Potential Role of Nuclear Hydrogen Production in Achieving South Korea’s Emission Reduction Target

Abstract

The Republic of Korea has set a highly ambitious carbon reduction program, planning to raise its greenhouse gas reduction goal to 40% by 2030. The government is planning to increase renewable energy supply to the energy mix and increase hydrogen production. Hydrogen is seen as potential energy to decarbonize the transport and industrial sector to be able to meet the greenhouse gas reduction target. Hydrogen can be utilized as an energy carrier to help reduce carbon dioxide emissions to achieve the Paris Agreement goals. Nuclear is one of the potential energy sources that can produce hydrogen in a large scale. Nuclear and other low carbon energy sources are the potential technologies to produce clean hydrogen. This study evaluates the potential role of nuclear-produced hydrogen to achieve Korea hydrogen production and greenhouse gas reduction target. Several scenarios are assessed including utilizing Korea’s current light water reactors, building new reactors, and building small modular reactors (SMRs). Economic parameters, renewable energy penetration, and the use of hybrid systems are also considered. Electrolysis-based hydrogen production methods are utilized and compared in this paper. Those scenarios aim to find the Levelized cost of hydrogen (LCOH). LCOH obtained in this study ranges from approximately 2.5 to 7 USD/kgH2, depending on the scenario. The potential greenhouse gas reduction is also analyzed and quantified as levelized cost of carbon mitigation. Policy implications of this paper is that nuclear-produced hydrogen could play an important role in the future low-carbon energy system in South Korea. However, its contribution depends on the potential economic benefits, the technological readiness of each technology, and the carbon pricing structure.