Lawmaker: halted coal-ammonia co-firing projects spent 34.2 billion won
In short
People Power Party lawmaker Yoon Jae-ok says four coal-ammonia co-firing technology projects have been halted, with 34.2 billion won already spent — 15.6 billion won in state funds and 18.6 billion won from private companies — citing data from the Korea Energy Technology Evaluation and Planning institute. Both outlets link the halt to the Lee Jae-myung government's 2040 coal phase-out, a cancelled clean hydrogen power tender and budget cuts. Yoon called for compensation for the affected companies and a prompt second Hydrogen Economy Basic Plan.
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People Power Party lawmaker Yoon Jae-ok said four USC-class boiler ammonia co-firing technology development and demonstration projects have been halted, with 34.2 billion won already spent — 15.6 billion won in state funds and 18.6 billion won from private companies — by the time they stopped, according to data he received from the Korea Energy Technology Evaluation and Planning institute. Both Yonhap and Asia Economy reported the figures on 6 October. [ 1 , 2 ]
The technology mixes coal with ammonia. It was pursued under the first Hydrogen Economy Basic Plan set up by the Moon Jae-in government in 2021, which set a goal of applying 20% co-firing to more than half of coal power units by 2030 and raising the ammonia share step by step towards full ammonia combustion before 2050. From April 2023, KEPCO, five public power generation companies, Doosan Enerbility and 26 private companies and research institutes took part in the joint development, the reports said. [ 1 , 2 ]
Under the Lee Jae-myung government's policy of phasing out coal generation by 2040, the climate and energy ministry cancelled a state-announced 3,000GWh competitive tender for the clean hydrogen power market on its closing day in October 2025 — Asia Economy dated the cancellation to 17 October — and later cut the project budget. All four projects were halted after special evaluations in February and July this year, and a June draft notice excluded coal-ammonia co-firing from clean hydrogen power market support. [ 1 , 2 ]
According to the special evaluation committee's opinion, cited by both outlets, the projects had met all quantitative targets and KPIs, had expected spillover effects for carbon-neutral technology and related industries, and their halt could not be attributed to the research institutions' fault. Asia Economy also reported that a January clean thermal power agreement review committee cited policy-driven permit holds and the cancelled tender market as reasons for stopping the work. [ 1 , 2 ]
“The government presented the policy direction and brought private companies in, and the project was scrapped overnight just because the administration changed,” Yoon said, adding that the 18.6 billion won invested by private firms now has no domestic market in which to use the technology. He called for a prompt second Hydrogen Economy Basic Plan and reasonable compensation for companies hurt by the policy change, saying that if trust in government policy breaks down, companies will not readily invest in long-term energy technology development. Asia Economy reported the ministry's position that coal-ammonia co-firing is not aligned with the 2040 coal phase-out and that it will hold no further tenders. [ 1 , 2 ]
Why it matters
The case raises the question of whether long-term state energy technology programmes can survive a change of government, and Yoon argues it could make private firms reluctant to invest in future projects. It also illustrates how the 2040 coal phase-out policy is being applied in practice, including the cancellation of clean hydrogen power bidding and the exclusion of coal-ammonia co-firing from market support.
Key facts
- Four USC-class boiler ammonia co-firing technology development and demonstration projects were halted, with 34.2 billion won invested by the time they stopped. [ 1 , 2 ]
- Of that total, 15.6 billion won came from state funds and 18.6 billion won from private companies. [ 1 , 2 ]
- The figures come from data the Korea Energy Technology Evaluation and Planning institute submitted to People Power Party lawmaker Yoon Jae-ok. [ 1 , 2 ]
- The projects were pursued under the first Hydrogen Economy Basic Plan set up by the Moon Jae-in government in 2021, which targeted 20% co-firing at more than half of coal power units by 2030 and full ammonia combustion before 2050. [ 1 , 2 ]
- From April 2023, KEPCO, five public power generation companies, Doosan Enerbility and 26 companies and research institutes took part. [ 1 , 2 ]
- The climate and energy ministry cancelled a state-announced clean hydrogen power market tender of 3,000GWh on its closing day in October 2025 and later cut the technology development budget. [ 1 , 2 ]
- All four projects were halted after special evaluations in February and July 2026. [ 1 , 2 ]
- A June 2026 draft notice excluded coal-ammonia co-firing from clean hydrogen power market support. [ 1 , 2 ]
Confirmed by several sources
- Four coal-ammonia co-firing technology projects were halted with 34.2 billion won already invested, including 15.6 billion won of state money and 18.6 billion won of private money. [ 1 , 2 ]
- The data was submitted by the Korea Energy Technology Evaluation and Planning institute to lawmaker Yoon Jae-ok of the People Power Party. [ 1 , 2 ]
- The projects were launched under the 2021 first Hydrogen Economy Basic Plan and ran from April 2023 with KEPCO, five public power companies, Doosan Enerbility and 26 companies and research institutes. [ 1 , 2 ]
- The special evaluation committee found the projects had met their quantitative targets and KPIs and that the halt could not be attributed to the research institutions' fault. [ 1 , 2 ]
- The ministry cancelled the clean hydrogen power market tender in October 2025, cut the budget, and excluded coal-ammonia co-firing from support in a June 2026 draft notice. [ 1 , 2 ]
Still unclear
- The total amount stranded by the halt. Asia Economy's headline says 324억 (32.4 billion won) while its own article and Yonhap both say 342억 (34.2 billion won) invested; the documents do not explain the headline figure.
- What compensation, if any, the government plans for the private companies that invested. Only Yoon's call for a reasonable compensation plan appears; no ministry position on compensation is reported.
- The reasons given by the January 2026 clean thermal power agreement review committee. Reported only by Asia Economy, which cites policy-driven permit holds and the cancelled tender market as the stated reasons.
- The exact date of the October 2025 tender cancellation. Asia Economy gives 17 October 2025; Yonhap says only October 2025.
What local media are saying
Timeline, local time
- Yonhap reports the halted projects and the 34.2 billion won invested, citing lawmaker Yoon Jae-ok's data from the Korea Energy Technology Evaluation and Planning institute. [ 1 ]
- Asia Economy reports the same figures and adds the ministry's policy reasoning and Yoon's fuller comments. [ 2 ]
- The climate and energy ministry cancels the 3,000GWh clean hydrogen power market competitive tender on its closing day. [ 1 , 2 ]
- The first special evaluation is held, and all four projects are later halted after a second evaluation in July. [ 1 , 2 ]
- A draft notice excludes coal-ammonia co-firing from clean hydrogen power market support. [ 1 , 2 ]