South Korea opens clean hydrogen power bidding market

South Korea’s Ministry of Trade, Industry and Energy (MOTIE) on Friday announced the launch of a clean hydrogen power bidding market for supplying and buying electricity produced by using clean hydrogen or hydrogen derivatives such as ammonia.

According to the ministry, this bidding market, said to be a world first, is expected to aid in the reduction of greenhouse gas emissions through the development of clean hydrogen, while also achieving affordable prices through competition.

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An annual bidding volume for this year is set at 6,500 GWh with a contract period of 15 years. Projects should commence commercial operation by 2028.

There will be a 24-week bid notification period, allowing sufficient time for power generators to secure their fuel supply contract. The winning bidder will be chosen in December based on price and nonprice indicators such as clean hydrogen utilisation grade and fuel supply stability.

In addition, the ministry said it will launch again this year the power bidding market for general hydrogen, which is aimed at driving the installation of distributed energy resources. The bidding volume will be 1,300 GWh. The power generation contract has a term 20 years and operations should start by 2026. Like last year, the winner will be selected in August.