Hydrogen Production Facility to Be Established in Pyeongtaek City

[Suwon Ilbo=Reporter Seo Dong-young] Pyeongtaek City announced on the 16th that it has been selected as the final recipient of a hydrogen production facility project announced by the Ministry of Trade, Industry and Energy.

The project selected one local government nationwide to receive 4.85 billion won in national budget support.

The hydrogen production facility will be constructed with a total investment of 21 billion won, including the national budget, at the Wonjeong industrial complex in Poseung-eup, next to the Pyeongtaek LNG terminal. Construction is scheduled to begin in January next year and be completed by March 2021.

Once construction of the facility is completed, it will be able to produce approximately 5 tons of hydrogen per day. This is estimated to be sufficient for approximately 8,000 hydrogen electric vehicles in the Gyeonggi Province area.

Once hydrogen is produced in the city, affordable hydrogen supply will become possible not only in Pyeongtaek but throughout the Gyeonggi region.

Currently, 96% of hydrogen available for supply nationwide is concentrated in southern regions such as Ulsan and Yeosu, where petrochemical complexes are located. As a result, hydrogen prices supplied to Gyeonggi Province are relatively the highest in the nation, which has been an obstacle to the expansion of the hydrogen economy.

After the completion of this project, the city estimates that by producing hydrogen independently, hydrogen prices can be reduced from the current supply price of 8,800 won/kg to 5,500 won/kg. This translates to a cost of 33,000 won for a 600km drive after full charging, compared to the existing 52,800 won—a 37% savings. As hydrogen prices become cheaper, the establishment of a hydrogen economy ecosystem being promoted by the city, such as the supply of hydrogen electric vehicles for reducing fine dust, is expected to gain further momentum.

Additionally, when the total of six hydrogen charging stations currently under construction in the city are completed, a total of eight hydrogen charging stations will be located near Pyeongtaek City, including two existing stations at the Anseong expressway rest areas in both directions.

Mayor Jung Jang-seon of Pyeongtaek said, "The roles of Gyeonggi Province and Pyeongtaek City are very important for the expansion of Korea's hydrogen economy," and added, "Through phased facility expansion, we will lead the way in fostering the hydrogen industry, including large-scale liquefied hydrogen production."