Lotte Chemical-Air Liquide Korea Establish Joint Venture for Hydrogen Business

Companies Aiming to Lead Energy Transition in Domestic Hydrogen Energy Market

Lotte Air Liquide Enerhigh CI

[Asia Economy Reporter Donghoon Jeong] Lotte Chemical and Air Liquide Korea announced on the 6th that they have completed the establishment of a joint venture as part of a strategic partnership to expand the domestic mobility hydrogen supply chain.

Lotte Chemical and Air Liquide Korea signed a memorandum of understanding (MOU) for hydrogen business cooperation in May last year, and in April this year, they signed a contract to establish a joint venture. The joint venture, named "Lotte Air Liquide Enerhigh Co., Ltd.," completed corporate merger approval last November.

The company name "Lotte Air Liquide Enerhigh" is a compound of Energy and Hydrogen, symbolizing a company leading the energy transition in the domestic hydrogen energy market starting with mobility. The inaugural CEO appointed is Somi Kim, Vice President of the Hydrogen Energy Business Division at Air Liquide Korea.

As its first project, Lotte Air Liquide Enerhigh plans to build a large-scale high-pressure hydrogen shipping center utilizing by-product hydrogen from Lotte Chemical’s Daesan plant, with business commencement scheduled for the second half of 2024. This shipping center will have the largest hydrogen production capacity in Korea (over 5,500 tons annually), which is enough to fuel 4,200 passenger cars or 600 commercial buses per day.

Lotte Air Liquide Enerhigh aims to capture the metropolitan mobility market through the Daesan high-pressure hydrogen shipping center and plans to additionally construct a hydrogen shipping center in Ulsan to handle hydrogen shipments in the Yeongnam region. Starting from this, they plan to develop and expand the hydrogen mobility market nationwide to meet demand including the joint venture Lotte SK Enerroot, established in September by Lotte Chemical, SK Gas, and Air Liquide Korea, as well as other Lotte affiliates.

Lotte Chemical is promoting hydrogen business for global clean energy distribution and carbon reduction growth. They have set a goal to invest a total of 6 trillion KRW by 2030 to produce 1.2 million tons of clean hydrogen, distribute and utilize it, and achieve sales of 5 trillion KRW. In preparation for increasing domestic demand, they plan to promote the import of clean hydrogen and ammonia overseas through various investments and partnerships, contributing to carbon reduction growth and the creation of a hydrogen-centered green circular ecosystem based on core competencies such as large-scale consumers, mass supply chains, and eco-friendly technologies.