The Ministry of Trade, Industry and Energy (MOTIE) held a conference on 25th October at the Korea Chamber of Commerce and Industry (KCCI) for energy sectors concerning the US’ Inflation Reduction Act (IRA) to discuss its impact and the countermeasures to be considered for companies in areas such as hydrogen.
Having entered into force on 16th August, the IRA is a law for solar power, wind power, hydrogen, nuclear energy, EVs, batteries and such clean energy areas. The US Department of Treasury (DoT) has begun specifying the detailed guidance provisions for implementation. A month-long process is underway for gathering public opinions on this matter.
Through this opinion gathering, the DoT expects to establish the terms and conditions of production, investment and manufacturing tax credit programs for solar, wind, nuclear, hydrogen power and clean energy.
The South Korean government has been actively engaging in diverse communication channels with the US executive branch and Congress members to relay South Korea’s stance and concerns to seek solutions while noting that the priority is on maximising gains and avoiding discriminatory treatment.
Tax credits in hydrogen, CCUS (carbon capture, utilisation and storage), energy efficiency, nuclear, renewable and clean energy will be good opportunities for business and market share expansion to domestic companies capable of delivering high-tech performance and production capacity.