Green New Deal & Hydrogen Economy in Gyeonggi-do, Korea

Gyeonggi Provicne promotes the Gyeonggi-do green new deal policy to revitalize the local economy and prepare for the fourth industrial revolution. Hydrogen energy is representative of eco-friendly energy, one of the keywords of Green New Deal.

In preparation for a post-COVID-19 world and to steer the South Korean economy back onto a path of growth, the Korean government has introduced a New Deal package founded on two pillars: the Green New Deal and the Digital New Deal. The Green New Deal is designed to help Korea battle carbon emissions through the development of environment-friendly industry sectors.

In 2018, South Korea was the world’s seventh largest carbon dioxide emitter. The Korean government has pledged to reach zero emissions by the year 2050. To achieve this, the government will slowly reduce funding for coal power plants while shifting its focus to green energy resources. Workers affected by this shift will have access to training so as to transition to new green jobs.

One type of green energy emphasized in this plan is hydrogen energy. The government plans to build new hydrogen production facilities and infrastructure to supply enough fuel for 49 thousand vehicles and buses. In addition, in 2021, the government will implement regulations requiring that 80% of the vehicles purchased by public organizations be eco-friendly.

Global Eco-Friendly Vehicle Trends: Electric Vehicles & Hydrogen Vehicles

Electric Vehicles

Tesla, Inc., formerly Tesla Motors, was founded in 2003 and revived the dream of electric cars; it still remains a leader in the field. However, the electric vehicle market is expanding and shifting quickly. Globally, there are many efforts to incentivize the adoption of electric cars. It appears that while the COVID-19 pandemic has had a negative impact on automotive industry sales, there has also been an increase in electric car sales.

Despite the fact that the electric vehicle sector accounts for only a small percentage of the automotive industry, the availability of new models/brands as well as eco-friendly government policies are factors that will lead to its growth.

Tesla is leading the electric vehicle race
ⓒ Tesla

New developments in the field have made electric cars more efficient and appealing to consumers. Audi recently announced the testing of new bi-directional charging systems that allow cars to store solar energy, a valuable technology currently being pursued by few major car producers.

Tesla Model 3 remains the biggest name in the market, but it is starting to face more competition. During the first half of 2020, Renault had the best-selling electric vehicle in the European market.

On top of that, amidst the shortage of affordable electric vehicles, Chinese carmakers have stepped up. The lack of affordable electric vehicles is one of the main deterrents in the adoption of electric cars by the public.

Hydrogen Vehicles

Hydrogen vehicles are similar to electric cars as they use an electric motor. However, the main difference lies in the source of electricity; while electric vehicles need to be plugged in to electrical grids to recharge their batteries, hydrogen vehicles use an on-board fuel cell to produce electricity.

Nikola Motor Company plans to manufacture hydrogen-electric trucks
ⓒ Nikola Corporation

As part of the Green New Deal, the Korean government has created a roadmap to improve the development of hydrogen vehicles. The government seeks to create an environment for the production of 6.2 million hydrogen vehicles as well as the establishment of 1,200 hydrogen filling stations by 2040.

Innovations in the field of hydrogen vehicles have also been very promising. Big-name care producers such as BMW have entered the race for hydrogen vehicles and new global corporations have started paying attention to the hydrogen economy.

Other governments are also trying to usher in hydrogen economies. For example, the UK has recently announced plans to experiment with hydrogen fuel cells, starting with the entire bus network of one town. The country has also allocated funds for the introduction of hydrogen trains. Concurrently, Germany is earmarking EUR 90 billion for the development of necessary infrastructure.

Korea’s First Hydrogen Economy Committee

With the introduction of the Green New Deal, the Korean government aims to foster the growth of 1 thousand companies in the hydrogen fuel industry by 2040. As for infrastructure, the government plans to establish 660 hydrogen stations and create two hydrogen-themed cities.

The first meeting of the Hydrogen Economy Committee convened at the Korea International Exhibition Center(KINTEX), Gyeonggi-do, where various issues were discussed and a road map created.

Gyeonggi-do Green New Deal Policy

Gyeonggi-do will also embark on this path with a Gyeonggi-specific New Deal program. The province plans to create 320 thousand green jobs by 2022. The Gyeonggi-do New Deal consists of nine central goals and 18 practical tasks in three areas: "data in the arms of the citizens," "low carbon with residents," and "safety net for residents".

Gyeonggi Province will push for a Gyeonggi-style New Deal
to prepare for the rapidly changing technology environment ⓒ 경기도청

The low carbon plans include establishing ecological safety measures to cope with climate change, stimulating a clean economy, and promoting a low-carbon energy society.

There are plans for supporting eco-friendly energy industries including the construction of hydrothermal energy complexes and promoting green industries.

According to emission reports released by the Korea Environment Corporation, the province has seen an average annual emissions increase of 3.4% over the past decade. In response, the provincial government plans to expand the renewable energy sector and related infrastructure.

Gyeonggi-do plans to create an ecofriendly hydrothermal complex in the cities of Gwangmyeong and Siheung by 2024. This project is expected to reduce fine particulate matter by 48 tons and greenhouse gases by 22 thousand tons.

In addition, a related plan is expected to create eco-friendly jobs through a hydrogen city project in Ansan, which will establish large-scale hydrogen infrastructure.

Plans for Hydrogen Energy Economy

Gyeonggi-do’s plans for a hydrogen energy economy consist of 5 major goals and 20 detailed tasks including the expansion of necessary infrastructure such as hydrogen production facilities, pipelines, hydrogen vehicles, and more.

The Gyeonggi Provincial Government plans to establish 10 hydrogen production facilities by 2030. It also aims to supply 130 thousand hydrogen cars and 4 thousand hydrogen buses while fostering the installation of 200 hydrogen filling stations. By 2023, the provincial government will have allocated a total of KRW 690 billion for hydrogen-related infrastructure.

Gyeonggi Provincial Government has established a basic plan for ecological construction
to foster the hydrogen industry

5 Goals and 20 tasks in 5 areas

The aim is to achieve the 5 major goals by 2030 through 20 priority tasks. These tasks include the establishment of an affordable and stable hydrogen supply system, the expansion of related infrastructure for residents, the development of a CO2-free hydrogen city, the creation of a hydrogen industry cluster, and the provision of basic support for a safe hydrogen ecosystem.

1. Stable and reliable hydrogen supply system

In order to establish a stable hydrogen supply system, the province will transform the Pyeongtaek LNG Terminal into a hydrogen supply hub for the southern and central parts of the Seoul-Gyeonggi metropolitan region.

In addition, nine hydrogen production facilities and charging stations will be installed utilizing bus facilities, local heating and gas facilities, corporate research institutes, and biogas facilities so as to establish a hydrogen supply network that will link production bases with hydrogen filling stations through a hydrogen pipeline network support project.

2. Expansion of infrastructure to meet resident needs

The provincial plan calls for the creation of accessible infrastructure that makes hydrogen energy transportation available to residents. This includes hydrogen cars, hydrogen buses, filling stations, and hydrogen fuel cell power generation.

According to this plan, 6 thousand hydrogen cars will be supplied by 2022, with that number increasing to 130 thousand by 2030. By 2030 the number of hydrogen buses will be increased to 3 thousand (accounting for 30% of the total number of operating buses).

3. Establishment of a hydrogen city

The plans include the development of a self-reliant hydrogen-themed city. Apart from simple installation support projects, the government plans to implement projects based on the needs of local residents and to provide intensive support to industry and logistics complexes as well as transportation hubs.

4. Hydrogen industry cluster

Gyeonggi-do will create a hydrogen industry convergence cluster in cooperation with cities and counties such as Ansan, Hwaseong, and Pyeongtaek. The aim is to create a global hydrogen industry R&D hub by utilizing the unique industrial advantages of cities and counties in the province.

5. Basic support for a safe hydrogen ecosystem

Finally, based on the Ordinance on the Promotion and Support of the Hydrogen Industry in Gyeonggi Province, related technical support, human resource development, public relations, and education support will be implemented. Gyeonggi-do also plans to host an international hydrogen expo.

Gyeonggi Province will make efforts to develop the hydrogen industry into
a new future growth engine

Expected Impact of Hydrogen Ecosystem

The funding and development of this hydrogen ecosystem is expected to have a multi-faceted and positive impact.

1. Creation of jobs and economic benefits

Development of the new hydrogen ecosystem is expected to create approximately 75 thousand new jobs. The economic benefits are estimated as being comparable to an investment of KRW 5.5 trillion.

2. Conversion to green energy

Conversion to hydrogen fuel cell power generation will develop a supply capacity sufficient for 1.56 million households, substituting for the use of approximately 340 million liters of gasoline.

3. Reduction of greenhouse gases and fine particle pollution

The implementation of hydrogen energy will reduce the province’s greenhouse gas emissions to the targeted 9%. On top of that, fine particulate matter pollution will be reduced by 22%, equivalent to the air inhaled by 650 thousand adults in 1 year.

Hydrogen Mobility Show

The Korea International Exhibition Center (KINTEX) in Goyang City was the site of the first Hydrogen Mobility Show, an exhibition that brought together 108 institutions from 11 countries that are working on hydrogen vehicles, charging infrastructure, and more. The show received an estimated 12 thousand visitors.

The world's first hydrogen mobility show was held in Goyang City, Gyeonggi-do
ⓒ KAMA

Due to travel restrictions put in place due to the COVID-19 pandemic, it was not easy for overseas buyers to visit this show in person, and so the organizing committee instead promoted an online video consultation format. Export consultations have continued through the Korea Trade-Investment Promotion Agency (KOTRA) after the exhibition’s final day.