Hydrogen and Fuel Cells: Korea’s National Program
As stated by a survey of Korea elaborated by FuelCellToday, South Korea represents one of the world’s most promising markets for fuel cell adoption and is one of the foremost countries for fuel cell manufacturing. Korea has expertise in R&D and manufacturing of stationary, portable and transport fuel cells, with early markets for domestic adoption and large export opportunities.
The South Korean government is firmly committed to the idea of low carbon economic growth and economic stimulus through the promotion of new technology. The motivation for government interventions in green technology, and particularly fuel cells, is to create conditions for future economic growth by establishing a domestic supply chain for ‘green’ manufacturing and to adopt clean energy technologies in Korea while building a market for future exports. Fuel cells represent one of the few realistic low carbon technologies that can be brought to market in the short term, helping achieve climate and energy policy targets while having the advantage of creating jobs and wealth for the Korean economy.
South Korea has one of the most supportive policy environments for fuel cells apart from Japan. In terms of specific policies, there are a number of government programmes to increase energy efficiency and new and renewable energy, and promote economic growth including:
- A requirement that by 2012, Independent Power Producers must generate 2% of entire energy needs from new and renewable sources.
- 80% government subsidies for small stationary fuel cell installations, as well as up to 10% from local government.
- Government is also supporting the development of component manufacturing (through R&D support of Membrane Electrode Assembly, bipolar plate, and balance of plant manufacture).
The Korean government has been involved with fuel cell R&D since 1987. In 2003, the government produced a 10 year plan for the development and dissemination of new and renewable technology. R&D funding was rapidly increased, with US$500 million going into RD&D between 2004 and 2008. In 2008, the Ministry of Knowledge Economy (MKE) announced the ‘3rd Basic Plan for the Development of New and Renewable Technology’ which included fuel cells as one of six ‘new growth engine technologies’. This included a second phase of the stationary fuel cell demonstration programme, which was begun in 2010, as well as a number of projects on fuel cell manufacturing technology. In addition, the Korean government in 2008 introduced a year-based feed-in tariff (FIT) for fuel cells, with the total capacity of US$50 million until 2011. From 2011, the government is introducing a year-based feed-in tariff for stationary fuel cells and from 2012, a Renewable Portfolio Standard will decree that 2% of generating capacity for Independent Power Producers must come from new and renewable sources.
In total, the budget for fuel cells in Korea is around US$100 million per year, mainly coming from the Ministry of Knowledge Economy (MKE) and the Ministry of Environment (MOES) as well as a smaller amount from industrial sources. There are separate funding streams for basic research, short term manufacturing technology research, demonstration and medium-long term strategic projects. This, together with a clear government roadmap for fuel cell commercialisation (due to be updated in early 2011), adds up to substantial levels of government support for fuel cells, which is rivalled only by the US and Japan.
The overall strategy contained within the National Long Term Plan is to achieve commercialisation of fuel cells in the domestic market in the early 2010s, and establish an export industry before around 2020. 2020-2040 will be the period where market expansion takes place and ‘realisation of the hydrogen economy’ is achieved.
Courtesy of Eng. Angelo Moreno (ENEA - CR Casaccia, Rome - Italy) in the attached pictures it is possible to see the resources allocated for fuel cells research, development and dissemination from 2001 to 2009 and the roadmap of the national program on fuel cells.
