SEOUL – Gyeongnam Energy and Korea Gas Corporation (KOGAS) have formalized a strategic partnership aimed at significantly expanding the hydrogen demand base and fortifying the supply network across South Korea’s Yeongnam region. The memorandum of understanding (MOU), signed recently, underscores a concerted effort to accelerate the nation's hydrogen economy, leveraging existing infrastructure and fostering new market opportunities. This collaboration is centered around the operational Changwon Hydrogen Production Base, a pivotal facility in the region's clean energy transition.
The Changwon Hydrogen Production Base, a joint initiative between Changwon City and KOGAS, commenced commercial operations in January of this year, achieving a steady production capacity of up to 10 tons of hydrogen per day. Gyeongnam Energy, selected as the consignment operator through a competitive bidding process by KOGAS last year, is responsible for the overall facility operation and safety management, while KOGAS oversees the production aspects. This operational model highlights a division of expertise designed to maximize efficiency and reliability in hydrogen supply.
Under the terms of the new agreement, Gyeongnam Energy and KOGAS will deepen their cooperation across the entire hydrogen value chain. Key areas of collaboration include identifying and marketing new hydrogen demand sources, jointly preparing comprehensive supply plans, facilitating the sharing of critical supply and demand information, and formulating policy proposals to support industry growth. This integrated approach is vital for an industry still in its formative stages, where demand creation and infrastructure development must progress in tandem.
Shin Chang-dong, CEO of Gyeongnam Energy, emphasized the broader implications of the partnership, stating, "This agreement is a joint declaration for the hydrogen industry as a whole beyond simple operation. We will accelerate the creation of a sustainable hydrogen ecosystem that leads to youth job creation and revitalization of the local economy." His remarks underscore the socio-economic benefits anticipated from a robust hydrogen sector, including employment opportunities and regional economic uplift.
The strategic focus on the Yeongnam region and the Changwon base aligns with South Korea's national ambition to establish hydrogen-specialized complexes. The Ministry of Trade, Industry and Energy has indicated plans to initiate construction of such hubs by year-end in other key industrial locations, including Donghae, Samcheok, and Pohang. These specialized complexes are designed to consolidate hydrogen production, distribution, and utilization, creating synergistic clusters that can drive down costs and accelerate adoption across various sectors, from transportation to industrial processes. The ongoing efforts in Changwon serve as a crucial blueprint for these future national initiatives, demonstrating the viability of large-scale hydrogen production and distribution within a regional framework.