Korea weighs direct power purchase for nuclear hydrogen production
Experts and industry stakeholders are calling for the revision of power trading regulations to enable direct power purchase agreements (PPAs) between existing nuclear power plants and electrolysis facilities for hydrogen production.
Our take
Will Korea allow PPAs from existing nuclear plants to supply hydrogen production?
Korea is unlikely to allow PPAs from existing nuclear plants to electrolysers soon, since no legal basis exists, the climate ministry questions reserving low-cost power for one industry and nuclear hydrogen costs exceed industry targets.
Nuclear output moved to electrolysers would be replaced by costlier generation, which KPX flagged as a cross-subsidy risk and the ministry as a benefit to one industry. A political decision on who bears that cost decides the question, and the seminar did not settle it.
For investors — Hydrogen project investors should build cases on grid supply at tariff, treat a dedicated nuclear power price as unconfirmed upside, and favour electrolyser designs that can vary output, which KPX raised as a requirement.
Lenders should treat the announced gigawatt capacities as plans, since no investment decision is likely before the PPA rule and cost allocation are set.
Watch: Ongoing discussions and calls for regulatory reform to enable direct power purchase agreements for nuclear hydrogen production.
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