Ulsan partners with Deokyang Energen to build hydrogen facility by 2026, reinforcing its role in South Korea’s growing hydrogen economy.
Ulsan City has taken another decisive step toward positioning itself as a central hub in South Korea’s emerging hydrogen economy. On Monday, city officials announced the signing of a memorandum of understanding (MOU) with Deokyang Energen, a company specializing in fuel gases and pipeline operations, to establish a new hydrogen production and distribution facility. This initiative underscores Ulsan’s determination to lead the transition to clean energy while simultaneously boosting local industry and employment opportunities.
Under the terms of the agreement, Deokyang Energen will invest approximately 22 billion won, equivalent to around $15.9 million, in the construction of the plant. The facility will be located in Hwangseong-dong, inside the Ulsan Mipo National Industrial Complex, a major industrial zone that already serves as a key base for heavy industries in the region. According to the city’s announcement, the hydrogen production plant is scheduled for completion by October 2026.
The plant’s design will include advanced production units capable of generating up to 2,400 cubic meters of hydrogen per hour. City officials noted that this output would be sufficient to refuel about ten hydrogen-powered buses simultaneously. By integrating both production and distribution within the same facility, the project aims to secure a stable hydrogen supply chain, which is vital for supporting the city’s transportation network and wider industrial applications.
During the official signing ceremony, Ulsan Mayor Kim Du-gyeom emphasized the city government’s commitment to the project. He stated that the administration would provide full support, including streamlined permits and other administrative services, to ensure that construction and operations proceed without unnecessary delays. “This agreement represents a valuable opportunity for Ulsan to strengthen its leadership role in the hydrogen economy,” Mayor Kim declared. He further stressed that the city will continue expanding hydrogen supply infrastructure, thereby creating an ecosystem that not only fosters sustainable growth but also generates new employment opportunities for local communities.
This latest agreement builds upon Ulsan’s broader strategy to attract investments and accelerate clean energy development. Earlier in May, Ulsan signed another significant deal with Korea Southern Power. That project involves an investment of nearly 600 billion won, or about $432 million, to build a 135-megawatt clean hydrogen power plant within the city. Construction on that large-scale facility is scheduled to begin in 2029, with the project expected to be completed by 2031. Together, these initiatives represent a coordinated effort to make Ulsan one of the nation’s most important hubs for hydrogen production, power generation, and industrial application, helping to secure its role in South Korea’s long-term energy transition.
