The Ministry of Land, Infrastructure and Transport announced on the 23rd that it will increase the fuel subsidy for hydrogen buses from 3,600 won per kg to 5,000 won, starting from the 1st of next month. This is a follow-up measure to the 'strategy for enhancing the competitiveness of eco-friendly vehicles and secondary batteries' announced at last month's ministerial meeting.
An official from the Ministry of Land, Infrastructure and Transport explained, "This aims to alleviate the fuel cost burden on bus operators operating hydrogen buses and to activate the distribution of hydrogen buses."
As a result of this policy, the actual fuel cost burden for bus operators operating hydrogen buses is expected to decrease by approximately 22%, from 6,400 won per kg to 5,000 won. It is anticipated that the annual fuel cost will be mitigated to a level similar to electric buses, decreasing from 34 million won to 26.5 million won.
In order to achieve the national greenhouse gas reduction target for 2030 and the hydrogen bus distribution target, the Ministry of Land, Infrastructure and Transport has been providing subsidies for hydrogen bus fuel since September 2021. The ministry has been determining the subsidies after comparing the recent trends in hydrogen prices and fuel costs with those of other buses, including electric, diesel, and CNG.
According to the Ministry of Land, Infrastructure and Transport, hydrogen buses have relatively higher refueling costs compared to electric buses, and there has not been a sufficient establishment of hydrogen refueling stations and maintenance facilities. While electric charging stations have been installed at bus depots, the number of large-capacity hydrogen refueling stations is limited to about 54.
Um Jeong-hee, director of the transportation logistics division, stated, "To activate the distribution of hydrogen buses, it is essential to have competitiveness in the three stages of purchasing, operating, and maintaining hydrogen buses," adding, "We plan to continue promoting the development of long-range models, alleviating the burden of hydrogen fuel costs, expanding nationwide hydrogen refueling and maintenance infrastructure, and reducing hydrogen production costs."
Meanwhile, the Ministry of Land, Infrastructure and Transport will launch a public service for the management of fuel subsidies on the 4th of next month to ensure transparent subsidy disbursement. This site will provide information on the status of the fuel subsidy system, payment details, and the latest policies, and will also allow for the reporting of fraudulent subsidy claims.