Korean hydrogen fuel cell Industry update and opportunity Korea Hydrogen Industry Association Nam Gyu Kim www.h2.or.kr

CONTENTS 1 2 3 4 Introduction of KHIA Hydrogen Status of KOREA Hydrogen Fuel cell Commercialization Center Hydrogen industrial promotion policy & Direction of industrialization improvement in KOREA 4

1 Introduction of KHIA KHIA : Contributed organization for activation of hydrogen industry as an association under the industry overall resources development of government. ◆ ◆ Member & member company : 180people (involved in the industry∙academic∙research∙public office : 82corporation)

1 Introduction of KHIA ◆ Work of association ① 5 Local headquarters, 6 Functional organization ② Enhancing network & cooperation(sign MOU ) International green energy Expo, The korean hydrogen & new energy society, Korea petrochemical industry association, CHFCA, UK Hydrogen and fuel cells association ect.

1 Introduction of KHIA Research of current State Of hydrogen ◆ Role of association Research of current State Of hydrogen Government policy & Action on research and development Action on hydrogen society In the future Research of standardization For the quality of hydrogen Research countermeasure Of safety & environment Fusion & compound Of hydrogen industry

Hydrogen Status of KOREA 2 Hydrogen Status of KOREA a Making a foothold of regional hydrogen industry in KOREA Chungcheongnam - do - effort to raise base for industry & commercialization of hydrogen car’s component Ulsan Metropolitan City - Eco-friendly cell fusion. Gwangju – hub city of hydrogen car

Hydrogen Status of KOREA (Building Hydrogen highway) 2 Hydrogen Status of KOREA ◆ Enhancing plan for industry in Korea hydrogen energy Direction of policy Named of action plan Hydrogen Network (Building Hydrogen highway) Conducting the early construction of infrastructure that is hydrogen charging station Construction business of piping system with utilizing hydrogen through enhanced oil refining – petrochemistry. Construct places that is eco-friendly related with fusion cells Create sites that include many parts of material of hydrogen fuel cell Make complex for production, transportation, storing and using of hydrogen. Construct complex that is “Smart Grid” of hydrogen Construct platform complex of fuel cell for electric power Network business for eco-friendly bus Construction business such as eco-friendly town based on hydrogen energy

2 b Hydrogen Status of KOREA Internal condition of hydrogen industry Division Content Remarks Numbers of production businesses 35 company Production factory output(N㎥/hr) 2,416,000 Amount of using (N㎥/year) Total 100% About 9 billion(won) Total in domestic (yearly) Pipe Line 88% About 8 billion(won) Tube trailer 12% About 1 billion(won) Distribution enterprise(5 company) Duckyang, SDG, SPG chemical, Air liquid Korea, Linde Representative company Having tube trailer (numbers) 425 All parts of country Pipe 100km(Ulsan), 73km(Yeosu) National industrial complex Businesses involved in hydrogen fuel cells 279businesses(Stack, Company on evaluation equipment , and on development catalyst etc.)

Hydrogen Status of KOREA 2 Hydrogen Status of KOREA c Current state of infrastructure on hydrogen charging places in KOREA Location Company Building Date(year) Method Charging Press 1 화성 현대차 2001 부생수소 70MPa 2 용인 2005 35/70MPa 3 대전 에기연 2006 NG개질 35MP 4 Seoul(신촌) GS칼텍스 2007 납사개질 5 Incheon 가스공사 6 SK에너지 LPG개질 7 Seoul(홍릉) KIST 2008 8 9 Ulsan 동덕가스 2009 10 여수 SPG산업 11 Jeju 2010 수전해 12 Seoul(양재) 13 Seoul(상암) 서울시 매립가스 개질 14 부안 KIER 2011 15 ulsan 2012 16 대구 이엠코리아 2013

Hydrogen Status of KOREA Hydrogen charging station 2 Hydrogen Status of KOREA d Internal status of infrastructure on charging hydrogen ▣ structure plan of hydrogen charging site (Until 2030, 813site) Division ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘25 ’30 Hydrogen charging station (numbers) establishment 5 8 10 15 25 50 100 Total 18 28 43 68 93 118 143 168 388 813

Hydrogen Status of KOREA 2 Hydrogen Status of KOREA e Current condition of fuel cell Current status of fuel cell(For progress, For using personally , Fuel cell car) Division Content Remark Numbers of company 9 POSCO:300MW/year, having a factory Sales size 1.2trillion won(2013) hydroelectric: 126MW(24places), Home : 1.5MW Running hydrogen fuel cell car 83car H2 Station 17places (present 2015) 168places(about 2020) Production size of hydrogen car 1,000car/year - HMC World: 39million(about 2020), Korea: 18 thousand Current dissemination condition of the fuel cell for progressing Aim: Installed capacity 2,034MW (amount of power15,146GWh)

Hydrogen Status of KOREA 2 Hydrogen Status of KOREA f Ulsan : The Global City of Chemical and Automobile Industry

Hydrogen Status of KOREA 2 Hydrogen Status of KOREA - Ulsan Petrochemical Complex

Hydrogen Status of KOREA 2 Hydrogen Status of KOREA g Basic Data Survey Hydrogen Related Company

Hydrogen Status of KOREA 2 Hydrogen Status of KOREA h Overall Mass Balance of hydrogen (Ulsan)

Hydrogen Fuel cell Vehicle 2 Hydrogen Fuel cell Vehicle i World’s First Mass Production Plant of FCEV (Feb.26, 2013)

Hydrogen Fuel cell Commercialization Center 3 Hydrogen Fuel cell Commercialization Center

Hydrogen Fuel cell Commercialization Center 3 Hydrogen Fuel cell Commercialization Center -Fuel cell components research center

Hydrogen Fuel cell Commercialization Center 3 Hydrogen Fuel cell Commercialization Center -Hydrogen Quality Certification Center

Hydrogen Fuel cell Commercialization Center 3 Hydrogen Fuel cell Commercialization Center -Hydrogen Fuel Cell Association

Hydrogen Fuel cell Commercialization Center 3 Hydrogen Fuel cell Commercialization Center -Collaborative System Establishment with Energy related Government Institutions

4 Internal hydrogen industrial promotion policy & Direction of industrialization development f 1) Promotion policy of hydrogen industry - In 2023: Build up 400 Hydrogen station Dissemination plan of NRE Dissemination policy of NRE Green Car Roadmap Supply 11%of renewable energy until 2035 Market RPS(power) RFS(Transport) RHO(Heat) -Scheduled capacity of generating plant 2,034MW at FC area among the dissemination plan of NRE in 2035 (14.3%) -For dynamo, house, building etc. -Aim to 11% of total amount of energy that is NRE target on 2035 -Activation of dissemination through carrying out RPS, Green Home, RFS, RHO -14million FC cars in 2030 -168 hydrogen stations in 2020 ◈ Technique & policy of government that is focus on the hydrogen fuel cell area contributed early industrialization. ◈ Conducting the dissemination policy with technique development.

4 Internal hydrogen industrial promotion policy & Direction of industrialization development f Policy/system Main Content Renewable energy feed-in tariffs (FIT) ․ Run RPS system in2012 Renewable portfolio standards(RPS) ․ Because of implementing from 2012, should disseminate renewable energy that is 10% of the amount of total power until 2020. Dissemination business of 1million green house ․ Support the part cost until 2020 when facilities make of renewable energy, dissemination of 1million green home ․ Government support max 75% of installing facility make of fuel cell Obligation of installing public building with renewable energy ․ Filling up with not fewer than 10% of total quantity renewable energy consumed about structure that is upper 3000㎡ (total ground area)when government office is built or extend after 2011. Activation plan of renewable energy(2013.8) ․ Conducting the system, “supply obligation”, of renewable heat energy (RHO: Renewable Heat Obligation) ․ Enlargement supporting to renewable resident power plant (giving preferential treatment to REC) ․ Suggestion of installing renewable facility which is using over 5000kW (incentive)

4 Internal hydrogen industrial promotion policy & Direction of industrialization development f 2) Direction of development Direction of enhancing hydrogen & fuel cells business Market Infrastructure-technology, supply chain Global Energy Policy Business Model

4 Internal hydrogen industrial promotion policy & Direction of industrialization development Necessary technique Hydrogen cylinder 1000bar→3000bar Standard technology of building hydrogen gas station Charging cylinder of Liquid hydrogen Technology of hydrogen instrument sensor Standard technology of safety management about utilizing hydrogen Business project for commercialization with hydrogen & fuel cells system

Thank you for your attention! Nam Gyu, KIM 82-10-2566-9337 57kng@naver.com