South Korea to launch auctions for 1.43TWh of hydrogen power

South Korea is launching new auctions for hydrogen-derived power, 500GWh classed as “clean” and 930GWh as “general”, as part of its goal to phase out coal-fired power by 2040.

Bidders for the clean power contracts, to be awarded in the second half of 2026, must meet an emissions threshold of no more than 4kg of carbon dioxide (CO2) per 1kg of hydrogen produced.

The auctions were announced by the Ministry of Climate, Energy and Environment (MCEE) which also confirmed coal-ammonia co-firing – a previously backed decarbonisation pathway for coal plants – will be excluded from the clean power bidding.

The general hydrogen power bids may accommodate hydrogen and hydrogen-derived fuels with greater emissions, possibly including grey hydrogen. It remains unclear whether ammonia co-firing will still be considered under these bids.

H2 View has reached out to MCEE for clarification.

The ministry also plans to reform the clean hydrogen auction’s evaluation criteria to help build a domestic clean hydrogen industry, encouraging local production and strengthening South Korea’s wider hydrogen supply chain.

In 2024, the country’s Ministry of Trade, Industry and Energy (MOTIE) the bidding market for up to 6,500GWh of electricity to be produced from clean hydrogen-fired power generation over 15 years.

By 2027, the nation aims to generate 3,000-3,500GWh of power annually from clean hydrogen.

The Asia-Pacific region is increasingly looking at hydrogen and derivatives to decarbonise its energy production, with other countries like Japan and Singapore tendering for assets fuelled by ammonia and hydrogen.

Singapore’s Energy Market Authority (EMA) recently opened a for three new hydrogen-ready gas power plants to be online by 2032.