South Korea Pioneers Hydrogen Economy with Investments in Fuel Cell Power Stations

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Researched by Industrial Info Resources (Sugar Land, Texas)--South Korea is making significant progress toward the adoption of sustainable energy solutions. In recent years, fuel cell technology is one such solution that has witnessed remarkable growth in South Korea, especially in the development and deployment of fuel cell power stations in response to the nation's growing environmental awareness and efforts to attain net-zero emissions. According to the Korean Hydrogen Fuel Cell Industry Association and Korea Power Exchange, South Korea became the first country to install more than 1 gigawatt of installed fuel cell capacity for power generation in 2023.

Fuel cells, especially hydrogen fuel cells, have gained prominence due to their high efficiency, low emissions and versatility in various applications, including stationary power generation. As compared to conventional combustion technologies, hydrogen-powered fuel cells are two to three times more efficient, according to the U.S. Department of Energy. While a conventional combustion-based power plant can be up to 35% efficient in generating electricity, fuel cell systems provide up to 60% efficiency.

Fuel cell power stations include deployment of multiple fuel cells organized in a stack, with each fuel cell consisting of an anode, cathode and an electrolyte. The types of fuel cells include the proton exchange membrane fuel cell (PEMFC), solid oxide fuel cells (SOFCs) and molten carbonate fuel cells (MCFCs).

The market for fuel cell power stations in South Korea is driven by its insufficient domestic resources and lack of international oil and natural gas pipelines. According to the U.S. Energy Information Administration (EIA), the nation imports nearly 98% of its fossil fuel requirements and heavily relies on liquefied natural gas and crude oil shipments, rendering it vulnerable to global energy prices. Securing its own energy requirements through fuel cell technology would help the nation diversify and stabilize its energy security. This further aligns with the nation's ambitious goal to become a leader in the hydrogen economy with hydrogen as a key component for various sectors such as transportation, industry and power generation.

Industrial Info is tracking more than 200 projects of fuel cell power stations with investments worth US$26.82 billion in South Korea. Approximately 92% of the total spending is geared toward grassroot projects, and the remainder is aimed at unit additions.

With substantial investment of US$1.79 billion across 19 projects, SK Holdings (Seoul, South Korea) is planning to install fuel cell power stations in various parts of the country. One of its projects is aimed at constructing a fuel cell power plant, consisting of 133 300-kilowatt modules and generating hydrogen fuel cells to supply 39.9 megawatts of power, in Chungju. The project is expected to kick off toward the end of this year.. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for more information on the project.

About 63% of the total spending being tracked is in the planning phase, 28% is in the engineering phase, and about 8% is under construction.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).