Businesses pledge major carbon reduction through hydrogen by 2050

Industry

Published: 14 Jun. 2023, 17:59

Businesses pledge major carbon reduction through hydrogen by 2050

The heads of Korea’s major business groups pose for a photo at the second meeting of the Korea H2 Business Summit, a council of 17 companies focusing on hydrogen energy, at a hotel in central Seoul on Wednesday. Participants include Hyundai Motor Group Executive Chair Euisun Chung, eighth from left, SK Vice Chairman Chey Jae-won, ninth from left, and Posco Holdings Chairman Choi Jeong-woo, tenth from left. [NEWS1]

In the race to make Korea carbon neutral by 2050, at least 25 percent of carbon reduction will be achieved through hydrogen.

That pledge was made during a meeting of chiefs and executives of 17 Korean major business groups who gathered together Wednesday to discuss progress in their hydrogen businesses to promote the transition to hydrogen-based energy.

It was the second meeting of the Korea H2 Business Summit, a council formed in September 2021 and led by Hyundai Motor Group, Posco and SK.

Under the announced initiatives, the companies vowed to make efforts to make 10 percent of their total carbon reduction by 2030 through hydrogen. By 2050, the figure will be increased to 25 percent.

The council agreed to form investment funds and accelerate attracting financial investors.

The heads of Korea’s major business groups talk during a meeting of the Korea H2 Business Summit, a council of 17 companies focusing on hydrogen energy, at a hotel in central Seoul on Wednesday. [NEWS1]

The executives addressed the importance of cooperation in realizing their carbon reduction goals and vowed to continuously make investments in their own fields at home and overseas.

Hyundai Motor Group Executive Chair Euisun Chung specifically said Hyundai will introduce the revamped Nexo hydrogen-powered SUV in 2025.

"Hyundai Motor has been supplying hydrogen fuel cells to vehicle manufacturers like Iveco and has made partnerships with Hyundai Rotem in the vessel sector and Rolls Royce for aircraft," Chung said during the meeting. "In liquid hydrogen production, Hyundai will cooperate with SK."

"A hydrogen-powered tractor will be unveiled in the North American market by the end of the year, and we are planning to introduce a revamped Nexo hydrogen-powered SUV in 2025."

As of this year, a total of 17 companies have joined the Korea H2 Business Summit: Hyundai Motor Group, Posco and SK, Hyosung, Lotte, Hanwha, Samsung C&T, Doosan, Kolon and HD Hyundai. Smaller parties include chemical-focused Isu Group, car parts supplier Iljin, LS energy affiliate E1 and Korea Zinc.

The council vowed to make a combined 50 trillion won ($39.1 billion) of investment in hydrogen.

The meeting is supposed to be the Korean equivalent of the Hydrogen Council, a global lobbying group with 109 member companies from more than 20 countries. Launched in 2017, the council encourages investments, holds forums and releases reports to promote clean sources of energy.

From left, Hyosung Vice Chairman Cho Hyun-sang, GS Caltex CEO Hur Sae-hong, Hyundai Motor Group Executive Chair Euisun Chung, SK Vice Chairman Chey Jae-won, Posco Holdings Chairman Choi Jeong-woo, HD Hyundai President Chung Ki-sun, and Kolon Mobility Group co-CEO Lee Kyu-ho, take a photo after a meeting at a hotel in central Seoul on Wednesday. [YONHAP]

BY SARAH CHEA [chea.sarah@joongang.co.kr]