© KHNP

South Korea will break ground in October on its first nuclear-powered hydrogen production facility, a major step in the country’s strategy to expand its clean hydrogen industry. Korea Hydro & Nuclear Power (KHNP) is leading the project in Sinam-ri, near the port city of Ulsan.

10 MW Plant to Produce Over Four Tons of Hydrogen Daily

The demonstration plant will use 10 MW of low-temperature water electrolysis to produce hydrogen, powered directly by electricity from the nearby Gori and Saeul nuclear power plants. KHNP expects the plant to begin operations by March 2027, following a two-year construction period. Once operational, it will produce, store, and distribute more than four tons of hydrogen daily.

Regulatory Approval Needed for Direct Nuclear Power Supply

This facility will bypass the national power grid and connect directly to nuclear power plants, a setup currently restricted under South Korean regulations. KHNP plans to seek a regulatory sandbox exemption to allow this direct supply. Longer-term commercialization will require changes to electricity market rules and KEPCO’s electricity transaction conditions.

Samsung, Doosan, Hyundai Among Key Project Partners

Twelve organizations are collaborating on the project, including Samsung C&T, Doosan Energy, Hyundai Engineering & Construction, Korea Electric Power Corporation, and the Korea Atomic Energy Research Institute. Additional partners focus on safety, technical standards, and research. KHNP is finalizing licensing procedures related to site and power safety to ensure regulatory compliance.

Project Aims to Meet Clean Hydrogen Certification Standards

The hydrogen produced is expected to meet South Korea’s clean hydrogen certification, requiring greenhouse gas emissions to stay below four kilograms per kilogram of hydrogen. “Regardless of the power source, if it meets the greenhouse gas emission standards, it can be certified as clean hydrogen,” said Ahn Ji-young from the Korea Energy Economics Institute.

Uljin County Plans 300,000 Tons Annual Hydrogen Production

This project complements a larger hydrogen initiative underway in Uljin County. The hydrogen-specialized industrial complex there will cover 1.58 million square meters and is designed to produce 300,000 tons of clean hydrogen annually using nuclear electricity and heat. The first phase plans to use 500 MW of electricity to produce 70,000 tons of hydrogen per year.

Major Corporations Eye Investment as 2030 Launch Target Set

The county aims to achieve competitive hydrogen production costs of 3,500 won ($2.55) per kilogram, assuming an 85% operating rate at nuclear facilities. Companies such as Samsung E&A, GS Engineering & Construction, Hyundai Engineering, Lotte Chemical, and SK Ecoplant have already expressed strong interest in the project.

A Uljin County representative stated, “The global move toward tighter carbon emissions regulations has sparked significant corporate interest in hydrogen utilization. Our goal is to finalize the industrial complex plan by June, complete necessary approvals and land acquisitions next year, and have the entire complex operational by 2030.”