S. Korean manufacturing firms to commit $3.4B to cleantech in 2010

South Korean manufacturing companies are expected to commit more than 4 trillion won ($3.42 billion) to cleantech in 2010, according to Thomson Reuters today, citing new data from the Korean government.  The investment would be an increase from this year’s 3.2 trillion won.

The funds are expected to be used for research and development and manufacturing facilities related to solar cells, wind power, and hydrogen fuel cells.

A 2008 JP Morgan report said South Korea is going to be one of the fastest growing solar markets during the next four years, potentially growing power generating capacity 89 percent to nearly 1 gigawatt from solar (see Spain leads 2008 solar market).

And earlier this year, the government moved ahead with plans to promote renewable energy, offering subsidies starting in 2010 that would eliminate 80 percent of the cost of hydrogen fuel cells to power and heat homes (see S. Korea plans fuel cell subsidy for 2010).

The government is looking to help private companies boost their investment in the cleantech sector through other new policies, such as requiring public buildings to use renewable energy, Reuters reported. However, it isn’t yet planning to directly finance such investments.

In July, the South Korean government said it was planning to invest 2 percent of its annual GDP, or 107 trillion won ($84.5 billion), on environment-related industries during the next five years (see S. Korea plans $84.5B in cleantech investments).

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