South Korea to scrap coal-ammonia co-firing plans

Kim told Nikkei that the government is reviewing the change, emphasizing that while hydrogen co-firing with natural gas will continue, ammonia co-firing offers limited carbon reduction benefits. Critics have also pointed to the high costs and inefficiencies associated with ammonia and hydrogen co-firing, suggesting it is not the most effective use of these fuels.

The administration of President Lee Jae-myung, which took office in July, is doubling down on renewable energy expansion and aims to phase out all coal-fired power plants by 2040. This accelerated timeline effectively rules out significant ammonia co-firing beyond the next decade. In line with this policy change, South Korea recently cancelled the second round of its clean hydrogen power generation bidding market, which had offered 15-year contracts to subsidize hydrogen and ammonia co-firing.