Lotte Chem Invests 140 Billion KRW in "Global Hydrogen Project Development"

The Only Asian Chemical Company Participating in US and French Energy and Infrastructure-Led Fund

In May, Shin Dong-bin, Chairman of Lotte Group (second from the right), visited the Lotte Aluminum Ansan Plant.

[Asia Economy Reporter Choi Dae-yeol] Lotte Chemical announced on the 21st that it will invest 100 million euros (approximately 140 billion KRW) in the 'Clean H2 Infrastructure Fund,' which is centered around energy companies from the United States and France.

This fund is a global fund jointly led by Air Liquide and Total, co-chair companies of the Hydrogen Council, a global corporate consortium related to the hydrogen economy launched at the 2017 World Economic Forum (Davos Forum). Initial anchor investors include Air Liquide, a gas production and storage company, Total, an oil and gas exploration and production company, Vinci (construction and infrastructure), AXA Investment Managers (real asset investment, both from France), Plug Power (hydrogen equipment), Chart Industries (gas supply chain), and Baker Hughes (oil production, all from the United States).

The fund, sized at 1.5 billion euros (approximately 2 trillion KRW), plans to strategically invest in projects worldwide related to hydrogen storage, distribution infrastructure, hydrogen vehicle utilization, and renewable energy-linked hydrogen production. Lotte Chemical is the only Asian chemical company among the eight core investors participating from the fund's inception. The company plans to monitor global hydrogen technology trends, seek new investment opportunities, and lead the development of the domestic hydrogen industry.

Previously, Lotte Chemical announced an eco-friendly hydrogen growth roadmap that includes carbon-neutral growth and supplying 30% of domestic hydrogen demand. In collaboration with Air Liquide Korea, it is building hydrogen charging stations using by-product hydrogen, and has installed a carbon capture and utilization (CCU) technology demonstration facility at its Yeosu Plant 1 in partnership with domestic company Airrain. It is also promoting hydrogen business cooperation with related companies such as Samsung Engineering and SK Gas.

Shin Dong-bin, Chairman of Lotte Group, stated, "To achieve carbon neutrality by 2040, we are establishing cooperative relationships with various global companies and making significant efforts to strengthen the hydrogen capabilities of group affiliates." He added, "Each group affiliate will grow into a company leading the domestic hydrogen industry based on ESG (Environmental, Social, and Governance) management grounded in environmental and social responsibility."