The proposed amendment to the Enforcement Decree of the Hydrogen Economy Promotion and Hydrogen Safety Management Act (the “Hydrogen Act”), which was approved by the Cabinet on November 14, 2023 and publicly announced on November 21, 2023, provides the legal basis for the introduction of the Clean Hydrogen Certification System. In addition, the Ministry of Trade, Industry and Energy (the “MOTIE”) plans to announce the Notification on Clean Hydrogen (the “Clean Hydrogen Notification”), which shall cover the detailed and technical matters on the scope of clean hydrogen and certification.
The Enforcement Decree, as amended, defines greenhouse gas emission volumes that serve as references to distinguishing low-carbon hydrogen and low-carbon hydrogen compounds (both classified as “clean hydrogen”) by taking into consideration both direct and indirect greenhouse gas emission volumes from the extraction of raw materials to the production and import of hydrogen (including domestic and overseas transportation). The MOTIE Minister, in consultation with the heads of relevant central administrative agencies’ (Article 2-2 (1) and (2) of the amended Enforcement Decree) will notify these reference greenhouse gas emission volumes and further specified standards to be covered by the Clean Hydrogen Notification. It is expected that the greenhouse gas emissions standard will be somewhere around 4kgCO2eq/kgH2, as announced at the briefing session on the clean hydrogen certification system held by the MOTIE back in April 2023.
In the Clean Hydrogen Notification, the MOTIE will notify the certification standards for clean hydrogen based on the level of greenhouse gas emissions, taking into account the production method and technology applicable to the production of clean hydrogen, etc. in consultation with the heads of relevant central administrative agencies (Article 34-2 of the amended Enforcement Decree). Further, the MOTIE will designate clean hydrogen certification institutions by classifying them into certification operating institutions and certification testing and evaluation institutions, and details on their duties and designation standards will be prescribed by the MOTIE’s public notice (Article 34-8 of the amended Enforcement Decree).
The MOTIE plans to establish detailed regulations and guidelines on the Clean Hydrogen Certification System before the auction market for clean hydrogen power generation is established (scheduled for launch in the first half of 2024). On the other hand, the MOTIE has delegated specific standards for clean hydrogen, etc., to be discussed in the Clean Hydrogen Notification to gain operational flexibility considering that such may change with the technology growth. The MOTIE will follow up with necessary procedures, including the announcement of the Clean Hydrogen Notification in the near future.
