South Korea’s Ministry of Environment announced on January 1 its 2025 hydrogen vehicle subsidy plan. (Image courtesy of Yonhap)
SEOUL, Jan. 2 (Korea Bizwire) – South Korea’s Ministry of Environment announced on January 1 its 2025 hydrogen vehicle subsidy plan, allocating funds to support the purchase of 11,000 hydrogen passenger cars, 2,000 hydrogen buses, and 10 units each of hydrogen-powered trucks and street-cleaning vehicles.
The finalized subsidy guidelines, to be published on January 2 on the government’s zero-emission vehicle platform (ev.or.kr), introduce stricter performance standards for hydrogen buses. Starting this year, subsidies will only be granted to buses meeting criteria introduced in August 2024, such as fuel cell output and range per charge.
For example, buses with fuel cell outputs below 110 kW for low-floor models and 160 kW for standard models will face a subsidy reduction of 600,000 won ($450) per kW. Similarly, buses with ranges under 750 km and 960 km, respectively, will incur a deduction of 60,000 won ($45) per kilometer.
Manufacturers must also establish at least one maintenance center in each region where hydrogen buses are deployed. Regions with over 100 buses will require at least two centers, and those with more than 500 buses must set up 300 or more locations.
The ministry also announced plans to fund the replacement of 110 hydrogen fuel cells in buses that have exceeded their warranty period. Additionally, 1.96 trillion won ($1.5 billion) has been allocated to install at least 64 new hydrogen refueling stations nationwide, adding to the existing 386 stations as of December 29, 2024.
Despite government efforts, the adoption of hydrogen vehicles has fallen short of expectations. By the end of 2024, a cumulative 36,456 hydrogen vehicles had been deployed, far below annual targets. Adoption rates compared to government goals stood at 56.9% in 2022, 27.6% in 2023, and only 30.3% as of August 2024.
The Ministry of Environment aims to address these gaps through expanded subsidies, stricter standards, and improved infrastructure, reaffirming its commitment to promoting hydrogen vehicles as part of South Korea’s zero-emissions strategy.
Ashley Song (ashley@koreabizwire.com)
