Lotte Chemical, SK Gas, and Others Complete Establishment of Hydrogen Joint Venture 'Lotte SK Enerute'

Approval of Domestic and International Corporate Mergers Completed
Joint Venture Name and Co-CEOs Confirmed
Targeting Construction of Ulsan Byproduct Hydrogen Fuel Cell Power Plant with Annual Capacity of 500,000 MWh

On June 2nd, from left, Hwang Jin-gu, Head of Basic Materials Business at Lotte Chemical, Yoon Byung-seok, CEO of SK Gas, and Nikola Pouliquen, CEO of Air Liquide Korea, posed for a commemorative photo after signing a tripartite joint venture agreement for hydrogen. Photo by Lotte Chemical, SK Gas

[Asia Economy Reporter Choi Seoyoon] Lotte Chemical, SK Gas, and Air Liquide Korea announced on the 7th that they have completed the establishment of a joint venture for by-product hydrogen-based power generation and hydrogen transportation businesses.

The joint venture, named "Lotte SK Eneroot Co., Ltd.," completed corporate merger approvals in five countries domestically and internationally last September and finalized its company name and co-CEOs.

The newly confirmed name, Lotte SK Eneroot, carries the meaning of being "a steadfast and reliable root-like company for the new future energy industry."

The inaugural co-CEOs appointed are Yonghak Kim, Executive Director and Head of the Hydrogen Energy Business Division at Lotte Chemical, and Youngsun Shim, Vice President in charge of Hydrogen Business at SK Gas. They have also agreed on the initial staffing for business operations.

As its first project, Lotte SK Eneroot plans to invest approximately 300 billion KRW to build a by-product hydrogen fuel cell power plant on a 3,700-pyeong site within Lotte Chemical’s Ulsan plant, aiming to start operations in the first half of 2025. To this end, they plan to apply for permits for the fuel cell power generation business in October this year.

The power plant’s electricity production capacity is 500,000 MWh annually, which is enough to supply electricity for 120,000 households based on a four-person household standard for one year.

Along with constructing the hydrogen fuel cell power plant, Lotte SK Eneroot plans to establish hydrogen charging stations at major locations nationwide and explore business opportunities in clean hydrogen and ammonia.

Meanwhile, to ensure stable operation of the joint venture’s hydrogen fuel cell power plant, Lotte Chemical, as the largest domestic producer of by-product hydrogen, will provide raw materials and related business sites within the Ulsan plant, and secure hydrogen mobility demand through affiliated companies within the group to provide a stable business environment.

SK Gas will secure and supply by-product hydrogen through its affiliates in Ulsan and leverage its existing power generation business capabilities, LPG charging station network, and operational know-how to drive the joint venture’s long-term growth.

Air Liquide Korea, a global company with world-class technology in the industrial gas sector, will provide expertise and related technologies not only for hydrogen charging stations but also for hydrogen supply chains and distribution.