South Korean companies launch hydrogen business council

Out-Law News | 23 Sep 2021 | 12:32 am | 1 min. read

15 South Korean companies have established a business council for hydrogen development.

Known as the Korea H2 business summit, the council will discuss challenges that the industry faces and provide policy recommendations to the South Korean government.

Five members of the council including Hyundai Motor, SK, POSCO, Hanwha and Hyosung have already announced that they will invest a combined 43.4 trillion won (US$37.3 billion) in hydrogen production, distribution, storage and utilisation by 2030, according to local press reports.

SK Group has also proposed that the council create a hydrogen fund that can be used to assist members to seek business opportunities in domestic and abroad.

Hydrogen expert George Varma of Pinsent Masons, the law firm behind Out-Law, said: “Private sector collaboration is what is needed to drive the growth of the hydrogen market. The planned investment and growth in the hydrogen market is indicative of the prominent position South Korea, and in particular Hyundai Motors, SK, POSCO, Hanwha and Hyosung are intended to maintain in the marketplace in both their domestic market and internationally. This certainly is an opportune time to seek out investment into the hydrogen market with a wide variety of projects being developed with various governments providing seed funding to kickstart projects.”

According to a local report, the business council was first proposed by Hyundai Motor, SK and POSCO in March.

In October 2020, the president Moon Jae-in of South Korea announced that the country would reach carbon neutrality by 2050.