Changes in the Global Hydrogen Industry and their Implications

Hydrogen energy has garnered attention as a future energy source due to its eco-friendly nature, availability for storage and transport and flexibility in production and consumption. Efforts to supply the hydrogen energy in the real world, however, have faced difficulties. Fortunately, changes in the global energy mix and technological innovation reignited interests in the energy source. Investments in hydrogen energy by the major economies have gained momentum thanks to an increased production of renewable energy sources, the shale revolution and a nuclear power phase-out. Technological innovation in production, transport, storage, charging and applications of hydrogen has improved economic viability of the energy at a rapid pace.Amid the shift, developed countries are bracing themselves for the coming “Hydrogen Society” by establishing a new paradigm and strengthening competitiveness of the industry. The U.S. is expanding production of hydrogen with price competitiveness by using natural gas steam reformation technologies. European countries are producing hydrogen by utilizing excess electricity from abundant renewable energy sources. Hydrogen transport infrastructure leveraging existing natural gas grid is under development in the region as well.Japan, on the contrary, is making use of by-product hydrogen, a by-product of petroleum refinery and steel manufacturing and installing a large scale hydrogen network in preparation for imports of hydrogen from overseas markets. In particular, the Japanese government has been actively engaging in various hydrogen demonstration projects in partnership with the private sector since the early 2000s. It also has shown a strong political will to foster the hydrogen industry by stipulating the realization of a “Hydrogen Society” as the county’s goal in the Strategic Energy Plan of Japan (2013).Major advanced countries have built their country’s own paradigm to prepare for the “Hydrogen Society” by teaming up with the private sector from planning to execution. However, Korea is not fully prepared to usher in the hydrogen economy. This report will compare the Korean hydrogen industry with that of major economies and provide a growth potential outlook as well as the future direction of the industry