Kim Sung-hwan, the Minister of Climate, Energy and Environment, reiterated South Korea's commitment to ending coal-ammonia co-firing in an interview with the Nikkei. In the interview conducted at the end of last month, Kim stated that co-firing could serve as a means to prolong coal power generation and emphasized that it would no longer be utilized.
Kim explained that while ammonia is recognized as a key decarbonization material due to its zero greenhouse gas emissions during combustion, continuing co-firing with coal could undermine South Korea's decarbonization strategy. He added, "We cannot return to coal power generation." Kim has consistently advocated for the cessation of co-firing and, in a previous interview with Aju Economy, stated, "Environment, industry, and energy are no longer opposing concepts," emphasizing the need for South Korea to lead the transition from a fossil fuel-based society to a decarbonized green civilization.
Under the Yoon Suk-yeol administration, South Korea had been pursuing a policy to mix 20% ammonia in more than half of its coal power plants by 2030. However, the Lee Jae-myung administration is accelerating decarbonization efforts and plans to phase out coal power generation gradually. The goal is to eliminate all coal power plants by 2040, with plans to halt operations at 20 of the approximately 60 coal plants by 2030 and the remaining plants by 2040.
Impact on Japan's Ammonia Supply
The Nikkei noted that if South Korea stops co-firing, Japan would be left as the only major country using coal-ammonia co-firing. This could disrupt the global ammonia supply chain, particularly affecting major ammonia producers like the United States, and could impact Japan's ammonia procurement strategy. Japan sources ammonia from the U.S., Australia, and the Middle East, and had agreed to cooperate with South Korea in ammonia procurement as of March 2025 during the Yoon administration.
Additionally, the Japanese government has actively supported ammonia usage, with JERA, Japan's largest power company, and IHI, a major chemical company, working on commercializing ammonia combustion technology in Aichi Prefecture.
Kim stated that natural gas-fired power generation using liquefied natural gas (LNG) will continue to play a role until 2050. Regarding nuclear power, he emphasized that safety is the top priority and that instead of automatically shutting down aging reactors, measures for repair and lifespan extension will be pursued. However, he noted that decisions on new nuclear construction and the specific share of nuclear power have not yet been made.
Support for the Semiconductor Industry
Meanwhile, Kim discussed support measures for the semiconductor industry. With the global surge in demand for memory semiconductors driven by artificial intelligence, Samsung Electronics and SK Hynix are set to build four new factories in the southern region of the country. Kim remarked, "It is a fallacy that semiconductor factories cannot operate on renewable energy," indicating plans to increase the share of renewable energy sources like wind and solar.
He also emphasized that there are no significant issues with power or water supply in the semiconductor cluster currently under construction. As part of regional revitalization efforts, he mentioned plans to introduce a tiered electricity pricing system that would lower rates in areas farther from the capital region. Kim noted that the previous administration's increase in industrial electricity rates has weakened competitiveness against China, and he is considering related electricity rate reductions.
* This article has been translated by AI.
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