Kim Sung-hwan, the Minister of Climate, Energy and Environment, reiterated in an interview with the Nikkei that South Korea will end the practice of co-firing coal and ammonia in thermal power generation.
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, emphasizing that it will no longer be utilized.
While ammonia is recognized as a key decarbonization material due to its zero greenhouse gas emissions during combustion, Kim explained that continuing co-firing with coal could hinder South Korea's decarbonization strategy. He added, "We cannot return to coal power generation." Kim has consistently expressed the intention to halt co-firing, stating in a previous interview with Aju Economy that "environment, industry, and energy are no longer opposing concepts" and that South Korea aims to lead a 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 thermal power plants by 2030. However, the Lee Jae-myung administration is accelerating decarbonization policies, planning to phase out coal power generation gradually. The goal is to eliminate all coal power plants by 2040, with plans to cease operations for 20 of the approximately 60 coal plants by 2030 and the remaining plants by 2040.
Impact on Japan's Ammonia Supply
The Nikkei reported that if South Korea stops co-firing, Japan would remain the only major country engaged in coal-ammonia co-firing. This could disrupt the global ammonia supply chain, particularly affecting Japan's ammonia procurement strategy. Japan sources ammonia from the U.S., Australia, and the Middle East, and had agreed to collaborate with South Korea on ammonia procurement in 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.
Regarding the use of liquefied natural gas (LNG) in thermal power generation, Kim stated that it will continue to play a role until 2050. He also mentioned that for nuclear power, safety will be the top priority, and 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 Measures for the Semiconductor Industry
Kim also discussed support measures for the semiconductor industry. With the global surge in demand for memory semiconductors driven by artificial intelligence (AI), Samsung Electronics and SK Hynix are set to build four new factories in the southern region of the country. In this context, Kim asserted that the notion that semiconductor factories cannot operate on renewable energy is a fallacy, indicating plans to increase the share of renewable energy sources such as wind and solar.
He emphasized that there are no significant issues with power or water supply in the semiconductor cluster currently under construction. Furthermore, he mentioned plans to introduce a regional differential pricing system that would lower electricity rates in areas farther from the capital region as part of local revitalization efforts. Kim noted that the increase in industrial electricity rates under the previous administration has weakened competitiveness against China, and he is considering related electricity rate reductions.
* This article has been translated by AI.
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