Ministry of Trade, Industry and Energy

Vice Minister attends TAMHAE 3 commissioning ceremony

Trade, Industry and Energy Vice Minister Namho Choe visited Pohang Yeongilman Port on May 31 to attend the commissioning ceremony of the TAMHAE 3, Korea’s first domestically built geophysical exploration research vessel, also attended by representatives of related institutions and companies, including Mayor of Pohang Lee Kang-deok and Korea Institute of Geoscience and Mineral Resources (KIGAM) President Lee Pyeong-koo. date2024-06-03

First homegrown state-of-the-art geophysical exploration vessel sets sail

Trade, Industry and Energy Vice Minister Namho Choe visited Pohang Yeongilman Port on May 31 to attend the commissioning ceremony of the TAMHAE 3, Korea’s first domestically built geophysical exploration research vessel.   Weighing 6,000 metric tons, the TAMHAE 3 is a fully state-funded (KRW 181 billion) research vessel equipped with 35 different kinds of cutting-edge research equipment.   The TAMHAE 3 is replacing its predecessor TAMHAE 2 (built in 1996) for geophysical explorations in domestic and foreign waters, starting with Korea’s continental shelves and onto the polar regions and is expected to contribute to resource security development.   The vessel is capable of both 3D and 4D marine exploration and can analyze seafloor faults to detect changes occurring over time, which will come in useful in sensing seabed seismic signals and selecting sites for carbon capture and storage (CCS).   Vice Minister Choe remarked that efficient utilization of the TAMHAE 3 will go towards bolstering resource security, public safety, and achieving carbon neutrality. date2024-05-31

Vice Minister attends Clean Hydrogen Trade Initiative Forum 2024

Trade, Industry and Energy Vice Minister Namho Choe attended the third Clean Hydrogen Trade Initiative Forum on May 30 in Seoul, where international organizations, governments, and experts gathered to discuss measures for invigorating the clean hydrogen ecosystem.   The Forum was attended by related global companies and institutions, including S&P Global, International Renewable Energy Agency (IRENA), and the Hydrogen Council. date2024-05-30

Korea hosts Clean Hydrogen Trade Initiative Forum 2024

Trade, Industry and Energy Vice Minister Namho Choe attended the third Clean Hydrogen Trade Initiative Forum on May 30 in Seoul, hosted by MOTIE and organized by Korea Energy Economics Institute, where international organizations, governments, and experts gathered to discuss key issues on clean hydrogen, defined not by production method but by the quantitative measure of greenhouse gas (GHG) emissions, and countries' carbon reduction efforts.   S&P Global stated that a total of 40 million metric tons of clean hydrogen is estimated to be produced by 60 countries around the world by 2030, emphasizing the role of government support in accelerating the production of green and blue hydrogen. Speakers from the International Renewable Energy Agency (IRENA) and the Hydrogen Council noted that Korea, likely be a major hydrogen buyer and importer, will be able to secure affordable clean hydrogen by utilizing overseas renewable energy and natural gas. The German Federal Ministry for Economic Affairs and Climate Action announced its plans to import a total of 45-90 TWh of clean hydrogen by 2030, mentioning that it intends to buy low carbon hydrogen like blue hydrogen in consideration of the available quantity and economic feasibility.   Japanese energy company JERA introduced its demonstration outcomes from co-firing 20% ammonia fuel at Hekinan power plants and the reduction of NOx and Sox, some of the causes of fine particulate matter.   In his welcome address, Vice Minister Choe said that Korea is earnestly pushing forward the transition into a clean hydrogen ecosystem through launching the clean hydrogen certification system (December 2023) and the world’s first clean hydrogen power bidding market (May 2024). He also called for joint efforts in establishing a mutually complementary supply chain and harmonizing countries’ different clean hydrogen standards. date2024-05-30

Korea launches world's first clean hydrogen power bidding market

The Ministry of Trade, Industry and Energy (MOTIE) announced on May 24 that Korea is launching the world’s first clean hydrogen power bidding market. The bidding market is expected to contribute to reducing greenhouse gases (GHGs) through the development of clean hydrogen, while also supplying clean hydrogen at affordable prices through competition.   The clean hydrogen power bidding market is a market for supplying and buying electricity produced by harnessing clean hydrogen. Participants are allowed to harness power generators using only hydrogen that fulfills the domestic clean hydrogen certification standards (GHG of 4㎏CO2e or less per 1kg of hydrogen). This year’s annual bidding volume is 6,500 GWh with a contract period of 15 years. Commercial operation must begin by 2028, following three years of preparation period plus one year of grace period.   The bid notification period will be 24 weeks, considering the length of time needed for power generators to seal their fuel supply contract. The winning bidder will be selected in December based on price indices, clean hydrogen utilization grade, fuel supply stability, and level of contribution to industry and economy and other nonprice elements.   Meanwhile, the power bidding market for general hydrogen is to be launched this year as well. This bidding market aims to catalyze the installation of distributed energy resources (DER), with the bidding volume reaching 1,300GWh and the power generation contract spanning 20 years. Commercial operation must commence by 2026 following two preparatory years. The winning bidder, like last year, will be selected in August after an evaluation of price indices, power system impact, industrial and economic contribution, and nonprice indices.   Bid notifications and further details are to be available at the Korea Power Exchange (KPX) website (kchps.kmos.kr). date2024-05-24

Minister Ahn chairs 31st Energy Commission meeting

Trade, Industry and Energy Minister Dukgeun Ahn chaired the 31st Energy Commission meeting with related ministries and energy experts on May 22 to discuss measures for overseas renewable energy market entry support, electric power market system improvement, and the strategy for nurturing the carbon capture and storage (CCS) industry. date2024-05-24

MOTIE to back global market entry of homegrown renewable energy

Trade, Industry and Energy Minister Dukgeun Ahn chaired the 31st Energy Commission meeting with related ministries and energy experts on May 22 on three following agendas: measures for overseas renewable energy market entry support; electric power market system improvement; and the strategy for nurturing the carbon capture and storage (CCS) industry.   Over the past four years, Korean companies have won 41 overseas renewable energy project bids totaling USD 14.3 billion and equivalent to 20.4GW. Last year, the 28th Session of the Conference of Parties (COP28) to the UNFCCC saw 123 countries gather to sign the agreement to up the renewable energy generation capacity three-fold by 2030, signaling the intensifying global competition in renewable energy areas.   In view of these developments, the Ministry of Trade, Industry and Energy (MOTIE) is forming a public-private “Overseas Renewable Energy Market Entry Committee” as well as a “Team Korea” consortium per project composed of both public and private developers, manufacturers, and export financing institutions. Moreover, the ministry will establish a one-stop information platform specialized to support global renewable energy market penetration by gathering the information currently dispersed across numerous institutions and creating a consumer-oriented data hub to resolve blind spots in overseas market entry.   Furthermore, MOTIE will improve the electric power market system by incorporating the wider supply of various different carbon-free energy sources like nuclear power, hydrogen, and renewable energy. It will first launch a separate power market that accurately factors in real-time supply and demand volatility, while heightening overall flexibility based on a phased price bidding system transition. Second, it will modify the nationwide unified pricing system and leverage the Distributed Energy Special Act’s special exemptions in optimizing the site location of electric power resources. Third, the ministry also aims for stability and efficiency in attaining the mid-to-long term power supply target by launching capacity and contract markets based on competitive auctioning.   In addition, amid the increasing importance of CCS technology, demand is likewise growing for the commercialization of key technologies, securing domestic and overseas storage sites, and participation in global joint projects. Accordingly, MOTIE plans to secure professional talents and build up specialized companies, create markets early on through securing domestic and overseas storage sites, and nurture the CCS ecosystem. date2024-05-22

Korea and Czech Republic discuss stronger trade, energy, and industrial cooperation

Deputy Minister for Energy Policy Lee Ho-hyeon met with the Czech Deputy Minister of Industry and Trade Petr Třešňák on May 22 in Seoul to discuss stronger economic cooperation in energy, industries, and trade.   The meeting was held as a working-level follow-up to the bilateral trade and industry ministers’ talks held last month in the Czech Republic on the occasion of Trade, Industry and Energy Minister Dukgeun Ahn’s visit.   Both sides held in high regard the continuously rising bilateral trade and investment since the two countries’ upgrading their relations to the level of a Strategic Partnership in 2015. With next year marking the 35th anniversary of the establishment of Korea-Czech Republic diplomatic ties, the deputy ministers agreed to further the forward-looking development of bilateral relations.   The two sides held extensive discussions on the Trade and Investment Promotion Framework (TIPF), scale-up of joint R&D projects, establishment of a hydrogen mobility ecosystem, production of hydrogen in conjunction with nuclear power plants, cooperation in nuclear power plant technology and small modular reactors (SMRs), and entry into overseas electric power materials and equipment markets. They also affirmed a shared understanding on the importance of nuclear power generation with respect to achieving carbon neutrality and bolstering energy security. date2024-05-22

Energy Policy Deputy Minister meets Sarawak Premier

Deputy Minister for Energy Policy Lee Ho-hyeon met with Malaysia's Sarawak Premier Abang Johari Openg on May 21 in Seoul and discussed measures for energy cooperation in hydrogen and carbon capture and storage (CCS). date2024-05-22

Pan-ministerial working group to strengthen corporate assistance for CBAM response

Deputy Minister for Trade Yang Byeong-nae chaired the fourth meeting of the pan-ministerial Carbon Border Adjustment Mechanism (CBAM) Response Working Group with related ministries and discussed measures for strengthening cooperation on supporting domestic companies and submitting Korea’s position on the CBAMs announced by the EU and UK.   The EU is currently preparing its draft for the adoption of CBAM subsections, and the UK has launched a consultation seeking views on proposals for the design and administration of its own CBAM on March 21, 2023, which is to close on June 13, 2024.   To address domestic companies’ requests for preemptive response, the Korean government will actively communicate its position to the EU and UK, while heightening interministerial cooperation for stronger CBAM guidance and information provision to relevant companies. To relevant companies, the Government will be introducing its corporate assistance projects and monitoring firms’ response situation on a weekly basis.   Deputy Minister Yang stated that the Government will “continue to communicate with the EU on improving the mechanism based on suggestions voiced by Korean companies” and highlighted that “related ministries will make concerted efforts to enable domestic companies to effectively adapt and respond to these changes.” date2024-05-21