Plans to Present Model Enabling Private Autonomous Construction and Operation of Charging Stations

The Ministry of Industry, Commerce and Energy, Ministry of Environment, and Ministry of Land, Infrastructure and Transport have signed a memorandum of understanding with hydrogen vehicle and hydrogen charging station-related companies to establish a Special Purpose Company (SPC) for installation and operation of hydrogen charging stations, and have committed to pooling efforts to expand hydrogen charging station infrastructure.

An SPC establishment committee will be organized centered on the institutions that signed the memorandum of understanding (MOU) to finalize detailed business models and investment scales, and additional participating companies will be recruited with plans to complete the establishment by November of this year.

Hydrogen charging stations entail high installation costs (approximately 3 billion won) and are difficult to generate profits during operation (approximately 200 million won annually), so they have been constructed primarily by local governments and research institutions rather than private companies.

The Special Purpose Company (SPC) to be established this time will mitigate initial risk burdens through joint investment by multiple companies and present a business model enabling private entities to autonomously construct and operate hydrogen charging stations through application of diverse business models.

Vice Minister Lee In-ho of the Ministry of Industry, Commerce and Energy stated at this event, "Not only securing new growth engines for the future automotive industry but also from the perspective of improving atmospheric environment such as reducing fine dust, national interest in hydrogen vehicles equipped with world-class technological capabilities is increasing."

He further emphasized, "Centered on this hydrogen charging station Special Purpose Company (SPC), we must create a global success case in resolving the hydrogen charging infrastructure issue, which is the biggest obstacle to hydrogen vehicle adoption, and firmly maintain our competitive advantage in the hydrogen vehicle sector."

Meanwhile, the government plans to supply 15,000 hydrogen vehicles and construct 310 hydrogen charging stations by 2022 in accordance with the "Comprehensive Measures for Fine Dust Management" announced in September of last year.

To this end, the government plans to construct 10 hydrogen charging stations in 8 cities and provinces including Seoul, Busan, and Daejeon this year.

Additionally, the government will phased implement hydrogen charging stations on expressways to facilitate nationwide hydrogen vehicle dissemination, and has decided to select 8 high-traffic locations this year and construct them under the leadership of Korea Expressway Corporation and Hyundai Motor Company.

The government has decided to streamline regulations related to hydrogen charging station installation on the premise of ensuring safety, establish a stable hydrogen distribution structure and appropriate hydrogen price system, and mitigate private sector burden in constructing hydrogen charging stations.