South Korea’s first commercial green hydrogen station opens in Jeju. (Photo: Hyundai Motor)
South Korea’s Jeju Island is making bold investments in green hydrogen with nation’s first commercial green hydrogen refueling station and hydrogen production facility.
The local government aims to scale production capacity to 30 MW within five years. Future plans include converting excess electricity from wind and solar into hydrogen, maximizing the island’s natural resources and boosting renewable energy efficiency.
Green hydrogen to balance renewable power supply and demand
Jeju has made significant progress in its energy transition, with renewables now accounting for roughly 20% of the island’s electricity, more than any other region in South Korea.
However, abundant wind and solar resources often overwhelm the grid during peak generation times, forcing temporary shutdowns of power plants. To address this imbalance, the local government is turning to hydrogen as a storage and balancing solution.
Governor Oh Young-hun noted that Jeju, known for tourism, sees peak electricity demand in the evening when visitors and residents return home. This highlights the importance of energy storage. His administration plans to store excess renewable energy in the form of green hydrogen for later use.
Jeju was an early mover in green hydrogen development. Thanks to collaboration between the central government and private sector, the island already has a 3.3MW hydrogen production facility capable of generating 600 kilograms of green hydrogen per day. The site also includes a 2MWh battery energy storage system. Jeju aims to expand hydrogen production capacity to 30MW by 2030.
Wind turbines along the Sinchang coast of Jeju island. (Image: Pexels)
Jeju eyes global leadership in green hydrogen
To promote hydrogen-powered transportation, Jeju offers subsidies covering up to 50% of the cost of hydrogen fuel cell vehicles.
In 2024, the island opened South Korea’s first commercial green hydrogen station. Retail prices are about $10 per kilogram, which translates to roughly 100 kilometers of driving per kilogram, making it cheaper than gasoline for some cars, though still more expensive than EV charging.
While Jeju officials declined to disclose production costs, they acknowledged it exceeds the retail price. In general, green hydrogen costs three to five times more than natural gas. Still, the Jeju government remains committed to developing a full-scale hydrogen ecosystem and aims to establish the island as a global green hydrogen hub.
According to Thomas Koller from Energy Systems of DNV in the Asia-Pacific region, green hydrogen can become more economically viable as technologies improve and production scales. He noted that when electricity is in oversupply and prices dip—or even go negative—green hydrogen becomes a highly attractive solution in the broader energy transition.
Source: Straits Times, Argus Media
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