Hydrogen Energy: A Strategic Pillar for Achieving Carbon Neutrality and Accelerating the Energy Transition

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The accelerating pace of climate change has elevated carbon neutrality to a central tenet of global energy and environmental policy. Governments, industries, and institutions worldwide are mobilizing substantial resources to restructure their energy systems toward net-zero greenhouse gas (GHG) emissions by mid-century. Within this context, hydrogen energy has emerged as a strategic, multi-sectoral energy carrier, offering a high degree of scalability, versatility, and decarbonization potential.

Defining Hydrogen as an Energy Vector

Hydrogen is not a primary energy source but an energy vector that enables the storage, conversion, and distribution of energy across various sectors. When utilized—most notably via fuel cells—hydrogen reacts with oxygen to produce electricity, generating only water as a byproduct. This intrinsic characteristic positions hydrogen as a zero-emission energy carrier during its end-use phase, offering significant environmental advantages compared to conventional fossil fuels.

Moreover, hydrogen can play a key role in enabling the large-scale integration of variable renewable energy sources (VREs) by acting as a long-duration storage medium, thereby enhancing grid flexibility and reliability.

Hydrogen and Carbon Neutrality: A Systems-Level Perspective

Achieving carbon neutrality requires the decarbonization of energy supply and demand across power generation, transportation, industrial processes, and the built environment. While electrification through renewables can address a substantial portion of emissions, hard-to-abate sectors—such as heavy-duty transport, high-temperature industrial heating, and chemical manufacturing—require energy carriers beyond electricity. Hydrogen is uniquely positioned to fill this gap.

Of particular interest is green hydrogen, produced via water electrolysis using renewable electricity. Unlike gray or blue hydrogen, green hydrogen entails no direct or indirect CO₂ emissions, making it an essential component of any long-term decarbonization strategy.

Typology of Hydrogen Based on Production Pathways

Hydrogen’s environmental impact and economic viability vary significantly based on its production method:

  • Gray Hydrogen: Derived from steam methane reforming (SMR), this method emits substantial CO₂ and currently accounts for the majority of global hydrogen production.

  • Blue Hydrogen: Similar to gray hydrogen but incorporates carbon capture, utilization, and storage (CCUS) to mitigate emissions.

  • Green Hydrogen: Generated through renewable-powered electrolysis, it offers the only truly carbon-neutral production pathway to date.

The global policy focus is increasingly shifting toward upscaling green hydrogen through investments in electrolysis technologies, renewable capacity, and supportive market mechanisms.

Current and Potential Applications

Hydrogen’s versatility enables cross-sectoral deployment:

  • Transport: Hydrogen fuel cell vehicles (FCEVs) are gaining traction in commercial fleets and public transit systems, especially where battery-electric vehicles (BEVs) are constrained by range or charging limitations.

  • Industry: Hydrogen can substitute for fossil fuels in sectors such as steel, cement, and petrochemicals, thereby enabling deep industrial decarbonization.

  • Power Systems: Hydrogen can serve as a dispatchable fuel for power generation and as a buffer in power-to-gas (P2G) applications that store surplus renewable electricity.

Korea’s Strategic Position in the Global Hydrogen Economy

South Korea has articulated an ambitious Hydrogen Economy Roadmap with targets to become a global leader in hydrogen mobility and stationary fuel cell applications. Key initiatives include:

  • Establishing a nationwide hydrogen refueling infrastructure

  • Scaling up domestic hydrogen production, including green hydrogen pilots

  • Promoting hydrogen-powered urban developments (so-called "Hydrogen Cities")

  • Enacting the Hydrogen Economy Promotion and Hydrogen Safety Management Act (2021)

Major Korean conglomerates—such as Hyundai Motor Group, SK Group, and POSCO—are aligning their long-term strategies with hydrogen technologies, positioning the country as a first mover in the Asia-Pacific region.

Barriers and Critical Enablers

While the hydrogen economy presents numerous opportunities, several challenges must be addressed to enable its full-scale deployment:

  • High production costs, particularly for green hydrogen

  • Limited infrastructure for storage, transport, and distribution

  • Safety and regulatory concerns associated with hydrogen handling

  • Absence of global technical standards and certification mechanisms

To overcome these barriers, a coordinated policy and market design framework is essential—one that incorporates R&D investment, subsidies or carbon pricing, infrastructure planning, and public-private collaboration.

Conclusion

Hydrogen energy is poised to become a foundational pillar of the post-carbon energy system, complementing electrification strategies and bridging the decarbonization gap in challenging sectors. Its successful integration into national energy frameworks will depend on comprehensive planning, robust regulatory support, and international cooperation.

In the broader pursuit of sustainability, hydrogen is not merely an alternative energy option—it is a strategic enabler of global climate goals, economic resilience, and technological innovation.