South Korea's industry ministry on Monday designated eight additional hydrogen-focused businesses eligible to receive state financial support, in line with the country's goal to slowly phase out conventional resources and go carbon neutral by 2050.

The country launched a new law on promoting the hydrogen economy in February, under which companies whose business portfolio covers the sector can receive state subsidies of up to 150 million won (US$128,000).

So far, 19 companies have been tapped to receive the support, according to the Ministry of Trade, Industry and Energy. The companies include suppliers of parts for hydrogen fuel cells and charging facilities.

South Korea also helps such hydrogen-focused firms find new clients, along with other technological support.

The move comes in line with South Korea's goal to foster 100 hydrogen-focused businesses by 2025, eventually reaching 1,000 by 2040.

Hydrogen is an environmentally friendly alternative to fossil fuels as automobiles running on the resource only create water in the process of generating power. It can be produced as a by-product of industrial facilities, including petrochemical plants.

South Korea has been seeking to foster the hydrogen economy, utilizing the resource in various areas from automobiles to generating power. Under the plan, the country plans to produce 6.2 million units of hydrogen fuel cell cars by 2040 and build 1,200 charging stations across the country. (Yonhap)