Shortcut to Body Shortcut to main menu

Investment News

  • Home
  • About Us
  • Newsroom
  • Investment News
Korea steps up efforts to diversify green industry exports

[Image source: Gettyimagesbank]

According to Pulse by Maeil Business News Korea,

South Korea is stepping up efforts to diversify its green industry with a customized strategy for each region: supporting landfill projects in South America, landfill gas power plants in Central Asia, and green hydrogen projects in the Middle East. The country aims to hit 22 trillion won ($16.56 billion) in green industry exports in 2024 and expand it to 100 trillion won over the next five years.

According to Korean government sources on Tuesday, the Ministry of Environment devised a continent-specific strategy to achieve 100 trillion won in green industry orders by 2027. The targets are 40 trillion won in the Middle East, 23 trillion won in the Americas, including the United States and South America, 15 trillion won in Europe, and 10 trillion won in Asia.

Minister of Environment Han Wha-jin said, “Green industry exports in 2023 are considered a half-success as most of the orders came from the Middle East. we will establish a continent-specific strategy tailored to local environmental needs to improve both the scale and quality of green industry exports from 2024 onwards.”

Korean companies still prioritize securing orders from the Middle East. There is a high interest in green hydrogen and desalination technology as the region shifts away from oil, and Korean companies are expected to continue their active expansion in 2024. Among Korean companies, POSCO Holdings Inc., SK ecoplant Co., and Samsung C&T Corp. are recognized for their technological prowess in the green hydrogen sector, while GS Inima and Doosan Enerbility Co. lead in desalination technology.

Green hydrogen is hydrogen produced by electrolyzing water with renewable energy such as solar and wind power and is considered the most suitable energy source for carbon neutrality due to its zero carbon emissions. The Middle East, including the United Arab Emirates and Oman, has favorable conditions for the green hydrogen industry due to its abundant sunlight facilitating renewable energy production. The region is also well-equipped with port facilities and terminals to transport and distribute the green hydrogen produced. For these reasons, oil-producing countries in the region are focusing on green hydrogen as a future energy source after oil.

Southeast Asian countries along the Mekong River are struggling to expand their water management infrastructure as demand for domestic and industrial water increases along with the region’s economic development. In response, the Korean ministry will help Korean companies tap water supply and sewage management projects, as well as flood response fields projects, in the region. The ministry plans to hold briefing sessions to demonstrate Korean technologies to local governments with water supply rights in Southeast Asian countries at international conferences and support Korean companies’ efforts to secure orders. Companies such as POSCO E&C Co., GS Inima, Kunhwa Engineering & Consulting Co., DOHWA Engineering Co., Saman Corp., and CHEIL Engineering Co. are vying to win water and sewage orders overseas.

Central Asia is experiencing chronic energy shortages, and plans are in place to expand into landfill gas power generation and small hydropower focused on renewable energy. Sejin G&E Co., among others, holds the technology in landfill gas power generation. In Central and South America, where waste management systems are inadequate, there is significant potential for exports in landfill stabilization and waste recycling industries.

The Korean public and private sectors also plan to jointly explore markets in line with the government’s continent-specific green industry export strategy and will open a 400 billion won green export fund until 2028 to support promising projects.

By Hong Hae-jin and Yoon Yeon-hae

Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.

Source: Pulse by Maeil Business News Korea (January 31, 2024)

Meta information