Korea s Strategic Roadmap of Technology and Industry under Green Growth Paradigm. President Prof. June Seung Lee, Ph.D
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1 Korea s Strategic Roadmap of Technology and Industry under Green Growth Paradigm President Prof. June Seung Lee, Ph.D - 0 -
2 I. Green Growth and Green Industry II. Current Situation and Investment Target III. Green Technology R&D Roadmap - 1 -
3 I. Green Growth And Green Technology
4 Changes in Future Society and Need of Green Growth I. Green Growth and Green Technology Future Threat Need to respond resource crisis and environmental problems Three trends threatening our future Global Warming (Hot), Globalization & Growing Middle Class (Flat), and Population Growth (Crowded) Combination of all these accelerates climate change and increases demand on natural resources and deepens energy polarization. Response Regulatory support for the efficient use of resources and minimization of environmental pollution. Industry-oriented economic growth reached a limit in terms of environment and economy. Green growth is not an option but a must; However, Korea is facing a long way ahead. Preoccupancy Policy Need to set a policy direction on GT R&D according to the environmental changes. Develop a new growth engine through GT and environmental regulation. Future-oriented low-carbon green growth was presented as a new national vision to overcome resource crisis such as high oil price and climate change. (President Lee Myungbak, in his Liberation Day speech) - 3 -
5 Market Outlook of Green Industry I. Green Growth and Green Technology Global market to show an annual growth rate of 10.2% trillion in trillion by 2020 Domestic market to show an annual growth rate of 13.2% - 37 billion in billion by 2020 Global Market (Tri. Dollar) Domestic Market Greenization of industries to be accelerated - High efficient, low pollution vehicles (Hybrid, Electric, H 2, etc.) : 0.7% in % by Rechargeable Battery (Li-ion, Redox flow) : 30.5% in % by % High Eff., Low Poll., Vehicles 30.5% 24.3% 47% Rechargeable Battery 63% 31.4%
6 Concept of Green Technology I. Green Growth and Green Technology Traditional GT refers to eco-friendly resource technology such as renewable energy, clean energy, etc. (Technet, 07) Traditional GT : new & renewable energy, high energy efficiency technology, environmental technology, climate change adaptation technology. Technet : Bipartisan policy network of USA The concept of GT has expanded to include technological trends that support environmental sustainability and economic growth together. Fusion GT refers to low carbon, eco-friendly technology that drives low carbon green growth through making a synergetic fusion between IT BT NT, etc and between these new technologies and existing products & industries
7 Expansion to Fusion Green Technolgy I. Green Growth and Green Technology Drawing fusion technological characteristics, creative and innovative, out of traditional green technologies which focus only on individual purpose, function and use. Technology Overcoming limitations of existing technology Traditional Green Technology & Industry Creation of New Industry & Employment Enhancement of existing industry Industry Making the best of what Korea is doing well such as IT,BT,NT to the development of fusion GT, and being able to overcome the limitations of existing technology and creating new markets. Replacing existing technology with alternative ones, for example, production & storage of hydrogen using bio-mass & sunlight. Creating New fields via cutting-edge fusion technology like electrical power IT, new energy, etc
8 Roles of Green Technology I. Green Growth and Green Technology Pending Issues Worsening Energy Problems Fossil fuel running out, Korea importing 97% of its energy. Energy consumption per capita increases 5.8% per annum. Roles of GT Improving Energy Independence by energy source and energy efficiency technologies. (Solar cell, atomic power, lighting LED, Intelligent grid (electrical power IT)) Adapting to Changes by Disturbed Ecosystem The average temperature of Korea rose about 1.5% over the last 100 years, while the world gets 0.74 warmer. As the average temperature of the world gets 2 higher, 15~40% of flora and fauna disappear. Protecting ecosystem by preemptive investment into environmental protection technology. (prediction of climate change, CCS, water quality management, control of toxic materials) Emerging low carbon green industry Market for carbon emission reduction and green industry expected to grow to 3 trillion won by Green Technology Race to be more competitive among advanced countries like the U.S., Japan and EU. Shifting to low carbon industries via greenization of industry & space and zero-emission technologies. (Intelligent transportation & logistics, city revitalization, and virtual reality) - 7 -
9 II. Current Situation & Investment Target
10 Korea s Green Competitiveness II. Current Situation & Investment Target Green Competitiveness refers to the national competitiveness to realize green growth via low-carbon and green industry. Classification Japan Germany U.K. U.S.A. Korea OECD - Green Competitiveness Index (Rank) (1) (3) (4) (7) 97.4 (11) Low-Carbonization Index (Rank) (1) (6) (3) (9) 88.2 (13) Green Industrialization (Rank) (1) (2) (4) (7) (8) comparing with major 15 countries 11th 13th 8th Overall Green Competitiveness Low-Carbonization Index Green Industrialization Weakness Strength New, renewable energy application & energy efficiency Science & technology, environmental management - 9 -
11 Korea s Overall Conditions II. Current Situation & Investment Target Steady Increase of Green House Gas Emission 16 th in the world for green house gas emission 10 th in the world for CO2 emission Need to Implement the GT Level of GT Lower than Advanced Countries Korea s leading GT is around 60% of that of advanced countries Renewable energy (62%) atomic energy& nuclear fusion (64%) Hydrogen & fuel cell (55%), etc. Development Strategy in National Scale Inclination to Import New technology Rather than Develop One Import Dependency: Solar Power 75%, Wind Power 99.6%
12 Issues by Type of GT II. Current Situation & Investment Target Not enough preparation for commercialization and export, to preoccupy rapidly-growing new, renewable energy market. Core original technology of solar cell not secured, and need to improve localization of manufacturing equipment for greater price competitiveness and to secure an economic scale of production. Insufficient verification, distribution & core original technology for enhancing energy efficiency Intelligent grid or electrical power IT needs governmental support to build a verification complex. For IGCC, not enough infrastructure like plants and not enough incentives to attract power companies. Urgent need to enhance green competitiveness of key industries and acquire living-based technology. Levels of eco-friendly city and city revitalization technology are 20~50%, so that technological competitiveness is in urgent need. Need to introduce certification system and reinforcement of regulatory standard in order to enhance the greenization of key industries. Not enough response capacity to climate change and resource circulation system in regard to domestic circumstances. Resource circulation and environment purification technologies do not meet international standards. Few information DB for the evaluation of environmental hazards
13 Governmental Implementation by Department II. Current Situation & Investment Target Traditional GT R&D Fusion GT MEST MKE MoE Mid & long-term, fundamental & original technology research and training; atomic energy & nuclear fusion research Research on energy sources such as developing new & renewable energy and enhancing efficiency of electrical power; research on high efficiency green-tech. Environmental green technology such as reducing air pollution, improving water quality and waste treatment. Base-type Fusion GT Fundamental technology applicable to every field through the fusion between IT, BT and NT. Mission-type Fusion GT Technology to create added vale in the industry and products specifically connected to each ministry s mission through the fusion of IT, BT and NT. MLTM Research on eco-friendly method of construction and green technology in the field of marine energy. Selection of major fields for FGT in close consultation with related ministries / Implementation of R&D by the ministries according to their division of roles
14 Investment Target of Green Technology II. Current Situation & Investment Target R&D Investment Target Plans to double the R&D investment on green technology by R&D investment on green technology: from estimated 1 trillion won in 2008 to 2 trillion won by trillion won over 5 years, which is annual growth rate of 19%. Strategically Focus on fusion green technology. Total investment will be more than doubled Green Technology includes IT, BT, NT, CT and goes beyond all these combined. (President Lee Myung-bak, the Liberation Day speech)
15 III. Green Technology R&D Roadmap
16 Area of Strategic Focus III. Green Technology R&D Roadmap Prediction Production Consumption Environmental load reduction and recycle Post- Process Technology Prediction Technology High Efficiency Technology Application Technology Climate change prediction and evaluation Alt. Energy Resource Technology Efficiency Knowledge based pollutant free industry Alternative energy
17 Picking Technologies of Strategic Focus III. Green Technology R&D Roadmap Information based pollution free industry Climate Change Technology Basic Technology like IT, BT, NT & Other Industrial Technologies Monitoring & Prediction of Climate Change Impact Evaluation and Countermeasures Future Energy (Nuclear Fusion atomic power), CO2 Absorbent Renewable Energy Green Energy Environmental Technology Bio Energy Hydro Power Maritime Energy Geothermal Energy Energy Efficiency Green Home Green Car Energy-saving Home Applicances High-capacity Generation Solar Power Wind Power Hydrogen & Fuel Cell Coal Liquefaction & Gasification Energy Storage LED Electric Power IT CO 2 Capture & Storage Gas To Liquids (GTL) Non-CO 2 Control Eco-Friendly Products & Process Environmental Health Environmental Recovery Resource Circulation Water Treatment Pollution Prevention
18 Investment Strategy for GT Development III. Green Technology R&D Roadmap To set investment direction in consideration of current investment scale, technologies and the timing of commercialization. R&D investment on GT of strategic focus will be more than doubled by 1012 from 1.4 trillion won in Short-term, intensive investment Mid-term, intensive investment Long-term, intensive investment Long-term, Incremental Investment Technologies that require timely market entry by shortterm verification, distribution. silicon solar cell, advanced reactor, lighting LED, high-efficiency, low pollution vehicles (hybrid cars, etc.) Technologies needed to get dominant position in the market for mid-term competitiveness. High efficiency low pollution vehicles (electric & fuel cell), virtual reality, green process, rechargeable battery, non-co 2 treatment, water quality management, alternative water resource, waste cut-down Technologies that needs to be nurtured as the world leading ones. fast reactor, nuclear fusion reactor, hydrogen energy, fuel cell, eco-friendly plant growing, IGCC, urban revitalization, eco-friendly building, intelligent grid, CCS, toxic materials, prediction, evaluation & adaptation of climate change Fundamental and original technologies that must be acquired by steady investment. non-silicon solar cell, bio energy, intelligent transportation & logistics
19 GT-Related Human Resources III. Green Technology R&D Roadmap Level of HR Required by Technological Area Demand on high quality HR are the highest in original & fundamental technology. High-Quality HR Ratio = Masters & PhDs / Undergraduates + Masters & PhDs High-quality HR Rate by Technology Original & Fundamental Verification & Distribution Growth Engine Number of HR Required by Technological Area R&D personnel in the 27 technologies of strategic focus will rise to 33,000 by 2012 from 20,000 in Supply will be made with hiring about 7,000 unemployed people of related major and recruiting 14,000, and by re-educating 9,000 existing personnel and inviting 2,700 HR from abroad. How to Acquire GT Personnel Job rotation of the existing personnel. - Qualitative more than quantitative recruitment is needed. (ex) green job rotation training Offering special courses at graduate schools and GT basic track at undergraduate schools. International projects to attract GT human resources from abroad
20 GT-related Regulatory Change III. Green Technology R&D Roadmap Technology Concerned Regulation Merits Intelligent Grid [Electric Power IT), Rechargeable Battery Real-time Energy Trade System Installation of Energy Storage System Changes in consumption pattern, Cut-down of energy consumption Vitalization of battery market, Stabilization of power supply Eco-friendly Building High Efficiency, Low Pollution Vehicles Solar Cell, Bio Energy Green Process Reinforcing Standard for Energy Efficiency of Buildings Restricting Carbon Emission from Cars Electric Cars Only Lanes for Shortdistance Driving (120Km/h 80Km/h) Distribution System of Renewable Energy, strategically combining (FIT & RPS) Reinforcing Standard for Renewable Products & Facilities Reinforcing Standard for Eco-friendly Production Design and Tax Break for Building the Facilities. Acquiring state-of-the-art energy efficiency technology; More energy savings of buildings No more trade barrier when exporting cars to Europe Enable to expand consumer market for electric cars Expanding domestic market for renewable energy and boosting export Increasing Reliability of the products & facilities Development of plant industry and Low carbon industrial sites
21 Challenges to Yield Results in Short Time III. Green Technology R&D Roadmap 7 Core Technology & Products to Be Developed or Commercialized by 2012 Lighting LED Silicon Solar Cell Hybrid Cars Intelligent Grid Advanced Reactor Fuel Cell CO 2 Capture To be a growth engine by 2012 To be commercialized early 2012 To be developed by 2010 To be commercialized by 2011 To be developed by 2012 Products to be out for an early entry into the market no later than 2012 To be develped by 2012 Improving Efficiency of Lighting Devices for Home and Industry over 120lm/w from 80lm/w as of now. Completing the development of hetero-junction/ rear contact technology and high-efficiency, scalable module production technology. And raising energy conversion efficiency to around 16.5% from 15% as of now. Completing the development of LPG hybrid cars with CO 2 emission cut down by 30% and commercializing them by Completing the development of Smart Meter, Networking technology, distribution connection technology and commercializing Advanced Metering System by Completing the development of APR+ standard design technology, and starting to export OPR1000, APR1400, SMART, which have been already developed. Completing the commercialization of 1kW PEMFC (Proton Exchange Membrane Fuel Cells) for home use. And starting to commercialize products for portable/ mobile devices like notebook computers. Completing the development of 200~1000MW CO 2 capture plant for trial service and test. And reducing the capture cost to 10$/ CO 2 ton by 2020 from 30$/CO 2 ton of
22 Expected Effects III. Green Technology R&D Roadmap Sscience & Technology Securing World Class GT Ahead of Others. - GT will grow from 51% in 2008 to 94% by Economy Making GT Next Generation Growth Engine. - Soaring growth of domestic market and occupying the world market in advance. Environment Drastic Cut-down of CO 2 and Preservation of Environment - Less CO 2 emission thorough lessening dependency on fossil fuel and improving energy efficiency 90(%) (100bil. dollars) 1,185(1000) (1mil. CO2 ton) Technological Advancement Expanding Export & Domestic Market Job Creation Cutting down CO
23 Future Scenario of GT Development III. Green Technology R&D Roadmap GT Is the Key to Adapt to Climate Change 369ppm( 00) 454ppm( 30) 532ppm( 50) CO 2 concentration would rise 44%('00~'50), (Balanced Development(A1B) Scenario(IPCC, 07)) Aadvanced Reactor CO 2 emissi sion Non-CO 2 Treatment Lighting LED Silicon Solar Cell Intelligent grid Fuel Cell CCS High Efficiency, Low Pollution Vehicles Bio Energy IGCC Non-Silicon Solar Cell Eco-friendly Building Hydrogen Energy Green Process Fast Reactor Nuclear Fusion Reactor Highly Efficient & Clean Energy Sources
24 Green growth, contributing to Korean and Beyond Contribution to the International Community Improvement of the Quality of life National Development
25 - 24 -
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