Korean Hydrogen Explosions, Leaks, Auction Failure & Impeachment May Cause Pivot – CleanTechnica

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The hydrogen atom is tiny. Getting enough of it in one place requires pressures found at three to seven kilometers under the surface of the ocean. Unsurprisingly, it leaks. As it’s an indirect greenhouse gas and an explosion risk, that’s a big problem. South Korea has been learning exactly what that means.

On December 23, 2024, a hydrogen-powered bus exploded at a refueling station in Mokhaeng-dong, Chungju-si, Chungcheongbuk-do, South Korea. The incident occurred shortly after the bus had completed refueling and was starting its drive system, resulting in injuries to three individuals: a charging station employee, the bus driver, and another person present at the scene. All were hospitalized with non-life-threatening injuries. A red warning light on the dashboard was the only indicator that something was wrong before the incident.

In the aftermath of the explosion, a previously unscheduled inspection of the 147 hydrogen buses operating in the country found that one in nine were leaking. Unsurprisingly, the vibration of normal use eased off the tightness of various bolts and seals, allowing the leaks, which are being characterized as small. I was unable to find any governmental reports on the degree of leakage, but would be unsurprised to find it was greater than 1% of hydrogen per day. Hydrogen is the Houdini of molecules. Keeping it inside of things requires precision engineering, high-technology seals, perfect assembly, and constant maintenance. Checking all of the things which might loosen and cause leaks will require partial disassembly of vehicles, adding to already high maintenance costs.

On December 27, 2024, a fire occurred at a hydrogen refueling station in Hoedong-dong, Busan, South Korea. The incident was initially reported as an explosion due to a loud noise and vibrations felt in nearby buildings. However, subsequent investigations clarified that the fire resulted from a hydrogen leak caused by the activation of a safety valve, not an explosion. The fire was extinguished within approximately 50 minutes, and no casualties were reported.

This is far from the first time things like this have happened On May 23, 2019, a hydrogen tank explosion occurred at Gangwon Technopark in Gangneung, South Korea, resulting in two fatalities and six injuries. The incident took place during a test operation of a fuel cell generator, where oxygen inadvertently seeped into the hydrogen storage tanks, leading to the explosion.

South Korea’s hydrogen cars aren’t immune. In a recent re-inspection, 1,463 out of 9,482 cars, primarily Hyundai Nexo models, were found to have hydrogen gas leaks. The leaks, detected in components such as storage tanks and valves, raised safety concerns due to the potential risk of fire or explosion. Hyundai has initiated a global recall of the Nexo to address the issue, replacing faulty parts and conducting special inspections.

While the risks of hydrogen vehicles exploding have tended to be overstated, the high percentage of vehicles found to be leaking when inspected means parking hydrogen vehicles in enclosed spaces without excellent ventilation is a bad idea. While hydrogen was not the cause in the recent bus depot fire in France that destroyed most of a small town’s hydrogen buses, it wouldn’t surprise me if one or two of them weren’t leaking small amounts of hydrogen which contributed to the blaze.

Sales of Hyundai’s Nexo hydrogen fuel cell vehicle saw a sharp decline in 2023 and 2024. In 2023, Hyundai sold 4,328 Nexos in South Korea, a significant drop from the 10,164 units sold the previous year. U.S. sales also fell to 241 units from 408 in 2022. The downturn deepened in 2024, with South Korean sales plummeting by 99.4% in January, amounting to just two vehicles sold that month, and total U.S. sales for the year dropping to 93 units, a 61% decline from 2023. People globally are voting with their pocketbooks to buy electric cars, not fuel cell cars, something Hyundai was betting on.

South Korea’s hydrogen refueling infrastructure has faced significant setbacks in recent years, with nearly half of the country’s hydrogen refueling stations experiencing breakdowns between 2022 and 2024, resulting in over 1,100 cumulative days of downtime. In November 2023, a major hydrogen supply disruption temporarily closed three-quarters of the nation’s stations, leaving drivers stranded and some vehicles needing towing. While the number of hydrogen vehicles on the road has nearly tripled since 2021, growing to over 34,000, the infrastructure has not kept pace, with only 203 stations in operation.

The country tried to develop hydrogen-powered trains as well, with Hyundai Rotem leading efforts to develop alternatives for non-electrified rail routes. Backed by government funding under the Hydrogen Economy Roadmap, the initiative faces significant hurdles, including the high costs of hydrogen fuel cell technology and the production challenges tied to green hydrogen. So far, only one brief trial on tracks was conducted.

While South Korea been funding the development of hydrogen-powered ferries, none have yet entered commercial service, remaining in the pilot or development stage due to high costs, infrastructure challenges, and the complexities of hydrogen production. In contrast, battery-electric ferries have already begun operating on short routes, such as the “Green Dolphin,” benefiting from simpler infrastructure and more mature technology.

In more bad news for the country’s hydrogen plans in November 2024, it concluded its inaugural clean hydrogen power generation auction under the Clean Hydrogen Portfolio Standard. The Korea Power Exchange announced that out of six power plants participating with a combined capacity of 6,172 GWh, only one bidder, Korea Southern Power, was selected. KOSPO’s proposal to produce 750 GWh annually by co-firing ammonia at its Samcheok Bitdream Headquarters power plant was the sole bid below the government’s undisclosed price ceiling. This outcome highlighted challenges in the viability of hydrogen for energy, as only 11% of the offered volume was awarded.

As of January 2025, there have been no confirmed orders for liquefied hydrogen (LH2) tanker ships from South Korean shipbuilders. While companies like HD Hyundai Heavy Industries (HHI) and HD Korea Shipbuilding and Offshore Engineering have been actively developing designs and technologies for large-scale LH₂ carriers, these efforts remain in the research and development phase. For instance, in May 2024, Shell and HHI entered into a joint development agreement to design and construct a large-scale LH₂ carrier, targeting commercialization by 2030. However, this collaboration has not yet resulted in firm orders. Similarly, in January 2025, the South Korean government launched a project to design and build the country’s first liquefied hydrogen carrier, named Hydro Ocean K, with completion expected by December 2028. This initiative is also in its early stages, focusing on design and development rather than immediate construction orders.

The Changwon Hydrogen Liquefaction Plant, South Korea’s first of its kind, has been labeled a failure by a special committee established by the city council. In an interim report, the committee criticized officials for allegedly rushing the project without proper feasibility checks or adherence to legal procedures. Completed last year by Doosan Enerbility, the plant was designed to liquefy five tonnes of hydrogen daily from unabated natural gas for refueling stations but remains non-operational and has failed on-site testing. The project, backed by a 95 billion won ($65 million) loan guaranteed by the city, lacked a required fiscal impact assessment and city council approval for the collateral plan. The committee condemned the administration for evasion and non-cooperation during the investigation and vowed to demand accountability from key witnesses.

It’s quite likely going to lead to criminal charges, with the hydrogen for energy space being the next nuclear corruption scandal in the country. In 2012, South Korea found that reactor parts had been supplied with falsified safety certificates and broadly installed, leading to the shutdown of several nuclear reactors. The ensuing investigation revealed widespread corruption within the nuclear industry, resulting in the indictment of approximately 100 individuals, including a top former state utility official. By 2014, 68 people had been sentenced, collectively receiving 253 years of jail time. Will hydrogen see that level of concerns? It’s quite possible.

The recent political turmoil in South Korea is meaningful in this context. President Yoon Suk Yeol was elected as the President of South Korea in March 2022. He championed the expansion of nuclear energy and the development of a hydrogen economy as key components of the nation’s carbon neutrality strategy. He reversed the previous administration’s nuclear phase-out policy, aiming to increase nuclear power’s share of electricity generation to 34.6% by 2036 and committed 4 trillion won ($3 billion) to nuclear research and development during his term. On hydrogen, he promoted its integration into the energy mix and proposed establishing a “Carbon-Free Alliance” to expand the use of both nuclear power and green hydrogen. He served until his impeachment by the National Assembly on December 14, 2024, following his declaration of martial law on December 3, 2024.

The country has been advancing its hydrogen energy strategy since the early 2000s. The 2018 Hydrogen Economy Roadmap set ambitious targets, including 6.2 million hydrogen vehicles and 1,200 refueling stations by 2040. In 2021, South Korea became the first country to enact a comprehensive hydrogen law, formalizing its commitment to production, storage, and distribution.

Late in December, BloombergNEF analysts suggested that the change in political leadership in the country could lead to a pivot on its hydrogen strategy. None of the hydrogen targets have been remotely close to being met. Their hydrogen vehicles and refueling stations are leaking hydrogen, catching fire and exploding. Now it’s clear that hydrogen is a greenhouse gas, albeit indirectly, and 13 to 37 times worse than carbon dioxide, so small leaks go a long way. It’s time for South Korea to give up on the dead end of hydrogen for energy and refocus its industry and economy on electrification.