Korea Gas Corporation (KOGAS), a state-operated energy company, says it will invest 1 trillion won (US$895 million) by 2025 to establish infrastructure for liquefied natural gas (LNG) powered vessels and trucks, as well as hydrogen-fueled vehicles, reports news agency Yonhap. The announcement confirms views expressed by Ministry officials, KOGAS and KANGV earlier this year to develop the sector.
At the NGV Workshop 2018 in May, hosted by the Ministry of Environment Korea (MOE) and organized by Korea Gas Corporation (KOGAS) and Korea Association for Natural Gas Vehicles (KANGV), an MOE official explained that they are reviewing the phased dissemination of LNG trucks, for which a pilot project will commence before the end of 2018.
Furthermore, Korea Gas Corporation (KOGAS) and Busan Port Corporation (BPC) signed a “Business Agreement for Establishment and Activation of the Busan Port LNG Bunkering System” on July 5.
KOGAS, the world’s second-largest LNG importer, said it will consult with the government to expand the use of LNG for ship fuel and increase subsidies for eco-friendly vessels to get prepared for a stricter global sulfur cap on bunkers, set to be enforced in 2020.
In addition to the Busan Port initiative, the company says it will expand LNG charging stations in major ports and cargo terminals by 2020.
The new investment plan was set to meet the rising demand for LNG bunkering, which is expected to increase from 310,000 tons in 2022 to 1.36 million tons in 2030 under the tougher environmental regulations, the company said.
The firm will also develop high-powered trucks running on natural gas as alternatives for diesel trucks to reduce carbon emissions. In this regard, it has expressed intention to unite with Daewoo Tata, the nation’s second-largest commercial vehicle manufacturer, to develop a 400 horsepower truck, with a goal of beginning its commercialization in 2021.
Hydrogen is also on the agenda, focussing firstly on the city of Daegu as a testbed for developing hydrogen refuelling infrastructure in collaboration with local automakers. KOGAS plans to establish 100 hydrogen charging stations and distribution centers by 2022.