The country is looking to consolidate the supply chain for this renewable fuel source.
South Korea is working on the consolidation of its H2 supply chain by securing an overseas hydrogen production location.
There are reportedly six locations currently under consideration by the Asian country.
The Australia-Korea Business Council recently stated that Australia is one of the six countries being considered for that overseas hydrogen production base. Other countries the council identified as being on the list include Saudi Arabia and the United States. That said, the decision regarding the country that will be chosen is long from complete.
The Korean Ministry of Trade, Industry and Energy will be conducting feasibility studies for each of the locations. These are meant to help Korea take a closer look at the technology for each potential overseas hydrogen production area.
Once the host country has been selected, Korea will receive overseas hydrogen production proposals.
Following the feasibility studies, when Korea chooses the host country for its H2 production, it will open up to private companies for submitting project proposals. This will also involve a requirement for the private companies to demonstrate the commercial viability of those projects.
In order to boost the affordability of the renewable fuel, Korea intends to supply 30 percent – or 1.58 million tonnes – of H2 from the location it selects.
This places Australia in a favorable position. The reason is that the country’s supply of the fuel is plentiful. Moreover, it also has a well-established relationship with Korea in terms of energy and resources.
If Korea does choose Australia for this opportunity, the new alliance will help to further bolster the hydrogen industries in both countries. Moreover, it will also help to bring a new level of renewable energy into the relationship between Australia and Korea.
Australia has been making several moves forward with the intention of becoming an overseas hydrogen production site for many countries. It has already had its eye on serving other Asian nations such as Japan. Japan is looking toward H2 as an important non-fossil fuel and has also been looking to source its fuel from other countries.