Renewable Hydrogen Conference

Hydrogen Energy of KOREA

2018. 8. 31.

Jin-Nam Park H2KOREA / Kyungil University □ Contents

1. H2KOREA

2. The Status of H2 Related Industry

3. H2 Related Technology Development

4. Government Policies for H2 Energy

5. Cooperation between Korea and Australia

2 1. H2KOREA

3 □ H2KOREA

Centering on H2KOREA, FCEV & hydrogen energy industry are promoted Public-Private Partnership by the investment of members (since Feb. 2017)

Affiliated organization of the Ministry of Trade, Industry, and Energy. Ministry of Environment / Ministry of Land, Infrastructure, and Transport / Ministry of Strategy and Finance and various local governments are member or participating

Goal: Promotion of FCEV related industry and hydrogen energy industry.

Special Members Regular Members Associate Members

Government Department: 3, Local Government: 11, Company: 26, Others: 13 (Aug. 15, 2018) 4 □ H2KOREA Organization

Board of Directors

Director General Advisory Group Audit Secretary General

Policy Infrastructure Technology Business Planning Div. Buildup Div. Development Div. Cooperation Div.

• H2 Market analysis • H2 price • H2 energy • Public promotion • H2 infrastructure safety • Stable hydrogen • HRS • Regional cooperation • FCEV safety & supply • FCEV • International operation management • HRS Management cooperation • H2 industry promotion • Code & standard policy

5 2. The Status of H2 Related Industry

6 □ H2 Production Capacity of Korea (2015)

 Hydrogen Production: 1.9 Million Tons - Mainly produced in Petrochemical Complex Chungnam (Daesan) (Ulsan, Daesan, ) Production capacity: 530K tons/year * Annual Production: (Ulsan) 750K Tons, (Yeosu) 540K Tons, Production('15): (Daesan) 350K Tons 350K tons/year * Annual production capacity: (Ulsan) 940K Tons, (Yeosu) 570K Tons, Pipeline : 13.6km (Daesan) 530K Tons ~ x 1.5 * The additional production capacity of Ulsan, Yeosu & Daesan up to x 2 400,000 Tons (for 2 million hydrogen cars) 50km

- Petrochemical companies SK Energy, BP Chemical, and 30 other companies - Hydrogen producers Deokyang, Air Liquide, Linde, etc. 50km Jeonnam (Yeosu)  Hydrogen distribution: Most are self-consumption, Production capacity: 570K tons/year external supply is 260,000 tons Production('15): Ulsan (Onsan) Production capacity: - Major distributors: Deokyang (37%), SPG (28%), Air Liquide (25%), etc. 350K tons/year 50km Pipeline: 63.3km 940K tons/year - Distribution methods: Pipeline (193km) 88%, tube trailer 12% Production('15): 750K tons/year  Hydrogen consumption: Most consumptions are Pipeline: 99km industrial - Transportation consumption is low due to lack of FCEV 7 □ Fuel Cell Electric Vehicles in Korea (2018. 4)

Total 384 FCEV is sold in Korea by July 2018

Region Numbers

Gyeongsangnamdo 77 3 Ulsan 144 33 Gyeonggi 87 5 Chungcheongnamdo Chungcheongnamdo 27 27 Sejong 2 Seoul 33 1 Gyeonggi 5 Incheon 3 Jeollabukdo 2 1 Ulsan 144 Sejong 2 Gyeongsangnamdo Gwangju 77 Daegu 2 87 Daejeon 1 Jeollanamdo 2 Jeollabukdo 1 Jeollanamdo 2 Total 384 8 □ Deployment of H2 Refueling Station (2018.8) □ In Operation 12 units, Installing 7 units, Total 18 units will operate at the end of 2018

Status City Type Pressure(bar) Capacity(kg/day) Seoul Off-Site 700 110 Seoul On-Site 350 65 Operation Ulsan Off-Site 350/700 520 Gwangju Off-Site 350/700 220 in public Chungcheongnamdo Off-Site 350/700 270 (8) Gyeongsangnam-do Off-Site 350/700 250 Ulsan Off-Site 700 250 Gwangju Off-Site 700 250 Operation Gyeonggi-Do Off-Site 350/700 110 Incheon On-Site 350 65 in private Gyeonggi-Do Off-Site 350/700 430 (4) Gyeonggi-Do Off-Site 700 20 Gwangju Unknown Unknown Unknown Gwangju Unknown Unknown Unknown Ulsan Unknown Unknown Unknown Ulsan Unknown Unknown Unknown Seoul Unknown Unknown Unknown Gyeongsangnam-do Unknown Unknown Unknown Ulsan Off-Site 700 360 Planned Chungcheongnam-do Unknown Unknown Unknown (16) Gyeonggi-Do Off-Site Unknown Unknown Gyeongsangnam-do Off-Site Unknown Unknown Gyeonggi-Do Off-Site Unknown Unknown Jeollanam-do Off-Site Unknown Unknown Gyeongsangbuk-do Off-Site Unknown Unknown Ulsan Off-Site Unknown Unknown Incheon On-Site 700 250 Gyeonggi-Do Off-Site Unknown Unknown Ulsan Off-Site 700 360 Operation in Public Ulsan Off-Site 700 360 Installing Gyeongsangnam-do Off-Site 700 355 Operation in Privat Off-Site 700 Unknown (7) Plannede Gwangju On-Site 700 250 Gwangju On-Site 700 60 Installing Gyeongsangnam-do Off-Site 700 355 9 3. H2 Related Technology Development

10 □ Nexo (Released in March 2018)

Price (USD Thousand) Efficiency (km/kg) Mileage (km)

Tucson Down Tucson Up Tucson Up ix ix ix

FC durability (1,000 km) Maximum output (kw) Maximum speed (km/h)

160,000 km warranty Tucson Up Tucson Up Tucson Up ix ix ix 80,000 km warranty 11 □ Technology Development Roadmap (H2KOREA)

2018 2019 2020 2021 2022 2023

High durability Fuelcell Airfoil bearing Minimization of High durability Stacks and parts and high rigidity GDL Enhancing technology hydrogen leakage Polymer electrolyte design for durability of stack High durability parts for high-speed from nearby HRS membrane Minimizing the Main and MEA for heat Target compressors peripherals For FC Bus number of layers management (water pump)

500 bar composite 700 bar hydrogen Storage & Price reduction of container for tube storage tank for FC Refueling Large-capacity CNG / LPG hydrogen tank for Storage container trailer Bus compressor for reformer capacity FCEV for liquefied

Main hydrogen refueling augmentation hydrogen Hybrid HRS Low-cost HRS Multi-refueling Target demonstration package platform without delay

FCEV Durability more than twice Main (over 500,000 km) Target □ Planning to Establish SPC in 2018 for HRS

□ Backgrounds

 To spread the HRS, not only government support but also private investment and participation are needed

 Considering the fact that the initial cost is high and the loss is inevitable for a certain period of time, there needs an SPC involving a number of companies to lower the risks

* Japan (JHyM) and Germany (H2 Mobility) are increasing HRS through a number of private companies

□ Purpose of SPC establishment

 Share and reduce the risk of initial investment in the early stage of market ,through the participation and the investment of companies related to FCEV

 Providing a stable hydrogen supply system - Establishment of SPC involving a number of companies related to hydrogen such as automakers, public institutio ns, and gas companies to promote refueling infrastructure centered on the private sector

 Create optimal profit model by construction and operation of various types of HRS 13 4. Government Policies for H2 Energy

14 □ FCEV and HRS subsidy

◈ Support subsidies for FCEV purchasing and HRS installation since 2013 ▷ (FCEV) 30% of price gap between ICE and FCEV * 2015∼2017: USD 27.5K (FCEV USD 80K) → Government 27.5K + Local Govern. 10 ~ 27.5K * 2018∼ : USD 22.5K (FCEV USD 70K) → Government 22.5K + Local Govern. 10 ~ 12.5K ▷ (HRS) USD 1.5M/HRS

(USD 1 ≒ KRW 1,000)

15 □ Deployment Plan for FCEV & HRS

 Support for the technology and subsidy to reduce FCEV sales price and installation cost of HRS  Supporting the technology development of electrolysis, reforming, storage, fuel cell technology, etc. Proliferation of EV & FCEV (2018.6, MOTIE) Role of organizations for FCEV & HRS ‘18 ‘19 ‘20 ‘21 ‘22 ‘30 Government FCEV 0.9 2 5 9 15 MOTIE ME MOLIT (1,000) (0.7) (1.1) (3) (4) (5) 630 • Nurture and sup • Supporting the • Deployment of HRS 39 80 130 200 310 520 (18) (41) (50) (70) (110) port H2 energy deployment of HRS in rest  FC Bus • Development & FCEV & HRS area deployment of • FCEV safety - Mass production system establishment by 2020 FCEV - FC Bus 1,000 by 2022 • HRS safety

 HRS - 60 HSR in highway rest areas by 2022 Public-Private-Partnership H2KOREA - Target H2 Price: USD 6~8/kg - Establishment of private SPC: HRS installation & operation Promotion of H2 energy and related industry

• Government policy and law amendment • Investment: USD 2.33 billion (5 years) • Establishment of private sector lead H2 production & • Purpose: promoting FCEV, HRS, H2 Energy supply infrastructure • Target: deployment of 310 HRS & 16,000 FCEV by 2022 • Promote market-oriented development & • Mission: building plants for FCEV and stack, manufacturing commercialization of eco-friendly H2 technology • International standards and international cooperation FCB, developing H2 storage system 16 5. Cooperation between Korea and Australia

- Technology-related cooperation (such as hydrogen production, storage, transportation, fuel cell, intelligent power control) - Surplus power utilization technology

- Export of Hydrogen (green hydrogen based on solar & wind, grey hydrogen based on coal)

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