The industry ministry said Friday it has begun an auction to buy electricity from “clean” hydrogen power plants.
The auction aims to reduce South Korea’s greenhouse gas emissions while fostering competition to supply hydrogen-based energy at competitive prices, according to the Ministry of Trade, Industry and Energy.
Under the system, the government will clinch a long-term supply contract with suppliers at fixed prices.
Power generated from facilities that adhere to regulations, specifically those emitting no more than 4 kilograms of CO2 equivalent per kilogram of hydrogen, will be eligible to participate in the market.
The quantity is set at 6,500 GWh annually, with the contract running for 15 years. Considering the duration needed for preparations, the power generation is expected to start in 2028.
The final winner is expected to be announced around December, and the government will consider various factors, including stability in the procurement of hydrogen, as well as contributions to the industry a
nd the economy.
Source: Yonhap News Agency