As reported, the South Korean Ministry of Environment has requested a subsidy of $262 million to support the purchase of 1,500 H2 buses.

The South Korean government is expanding its generous subsidy program for hydrogen-powered buses, aiming to provide funding for more hydrogen buses produced in the country next year. Some reports suggest that the government might fund as many as 1,500 new buses, more than double the quantity of 2023.

On Wednesday, Environment Minister Han Wha-jin pledged to "significantly increase" the budget for subsidizing hydrogen fuel buses to be added to the country's fleet in 2024, with the goal of substantially increasing the number of hydrogen fuel vehicles on South Korean roads by the end of the decade.

"The government will establish a virtuous cycle structure for the supply of hydrogen vehicles and infrastructure for hydrogen production, supply, and charging, aiming to achieve the goal of supplying 300,000 hydrogen vehicles, including hydrogen fuel buses, by 2030," she stated during a visit to the world's largest hydrogen project. The liquefaction plant is currently being constructed by local provider SK ES in Incheon, on the outskirts of Seoul.

Han mentioned that the increase in subsidies for 2024 would depend on the supply of hydrogen buses. However, South Korean business website Pulse News reported that her department has submitted an application for 340 billion Korean won ($262 million) to the Ministry of Economy and Finance — more than double the budget for the 2023 plan.

Citing industry insiders, the report indicates that the Ministry of Environment plans to more than double the number of newly subsidized hydrogen buses next year, increasing from 700 in 2023 to 1,500.

Incheon City expects to receive 200 Hyundai hydrogen-powered buses this year, with 700 slated for delivery by the end of 2024. Hyundai recently announced plans to introduce 1,300 hydrogen-powered buses on Seoul's roads by 2026 — both projects have received financial support from the national government.

The hydrogen for the Incheon project will be supplied by SK ES's massive liquefaction project at the SK Incheon Petrochemical complex, with the department indicating the project is expected to be completed in November.