South Korean province plans $2bn clean Hydrogen production complex

South Korea’s Jeollanam-do province has applied to the trade, industry and energy ministry (Motie) for support to establish a 1GW hydrogen complex at the Daema Industrial Complex in the southwest port city of Yeonggwang.

The province plans to develop the country’s “largest” hydrogen production hub with a total investment of 2.7 trillion won ($1.93bn), starting with a 500MW facility in the first phase and later scaling it up to 1GW. The project will produce “clean” hydrogen using carbon-free electricity sourced from both renewable and nuclear power, the provincial government said.

The Hanbit nuclear power plant, located in Yeonggwang, could supply power for the complex, alongside solar photovoltaic output and offshore wind.

The province said the plan differs from existing hydrogen complexes in Gangwon and North Gyeongsang, which focus on storage, transportation and utilisation. Instead, Jeollanam aims to build a large-scale clean hydrogen production base while easing grid congestion in the Honam region by directly using local power from renewable and nuclear sources.

The complex is part of Jeollanam’s strategy to establish a “southwest coast clean hydrogen energy belt,” creating an industrial ecosystem covering production, storage, transportation and utilisation by 2030.

Provincial officials said around 20 domestic hydrogen-related companies have expressed an interest in participating in this project.

The complex is expected to support industrial hydrogen demand in the Yeosu-Gwangyang Bay petrochemical and steel cluster. Motie launched a public contest in July to select more areas for hydrogen industry clusters, with final sites expected to be announced in November.

Seoul last year designated two clusters — Donghae-Samcheok liquid hydrogen storage and transportation complex and the Pohang fuel cell power generation complex.

By Akansha Victor (Argus Media)