A vision for an Ulsan-style eco-friendly hydrogen energy ecosystem has been proposed, linking floating offshore wind power being developed off the Ulsan coast to green hydrogen production. Green hydrogen refers to hydrogen produced using renewable energy electricity, unlike conventional grey hydrogen produced from natural gas.
Ulsan Mayor Kim Sang-wook announced on September 21, 2026 through his YouTube channel that he recently visited the Blue House and discussed with officials including the climate, environment and energy secretary the issue of public water surface usage and occupancy fees for floating offshore wind and the direction of hydrogen industry development.
Public water surface usage and occupancy fees are costs borne by offshore wind developers when using the sea for installing power generation facilities.
If usage and occupancy fees are set excessively, the profitability and price competitiveness of power generation projects can decline, so Ulsan has been demanding the establishment of reasonable calculation standards.
Accordingly, Mayor Kim conveyed the view that adjusting related costs to a reasonable level is necessary to secure competitiveness for floating offshore wind. Research results related to public water surface usage and occupancy fees are expected to be released by year-end.
Combining offshore wind with green hydrogen
In particular, a plan to combine floating offshore wind with green hydrogen was also discussed.
The concept involves producing hydrogen by electrolyzing water using electricity generated from offshore wind, and then utilizing it as an energy source or raw material in onshore industrial complexes.
Hydrogen produced through water electrolysis using renewable energy electricity is classified as green hydrogen because it can significantly reduce carbon emissions during the production process. It differs from grey hydrogen produced by reforming natural gas in both production method and carbon emissions.
Mayor Kim said he received a suggestion from Blue House officials to research China's cases of linking offshore wind and green hydrogen. However, the specific business plan remains in the conceptual stage, with details such as the location and scale of hydrogen production in Ulsan, onshore transportation methods, and participating companies yet to be determined.
Building on existing hydrogen foundations
Ulsan has established hydrogen production and distribution infrastructure centered on by-product hydrogen from petrochemical processes. Mayor Kim emphasized the need to maintain this existing industrial foundation while fostering green hydrogen industry linked to floating offshore wind as a new growth axis.
The approach is to connect green hydrogen to Ulsan's existing energy industries including petrochemicals, natural gas, and ammonia, rather than treating it as a separate industry, thereby broadening the scope of industrial transition.
While combining floating offshore wind and green hydrogen is technically feasible, actual commercialization requires comprehensive review of economic viability, water electrolysis equipment construction costs, power supply methods, hydrogen storage and transportation infrastructure, and securing demand sources.
Mayor Kim stated: "We must prepare to combine floating offshore wind and green hydrogen while ensuring that Ulsan's existing hydrogen industry foundation does not collapse. We will build an energy industry ecosystem encompassing oil, natural gas, and ammonia."
Original Korean article: Ulsan Maeil
English brief by Korea Wind Intelligence, koreawindintel.com
