16 Projects Selected in General Hydrogen Power Generation Bidding Results
Lotte Chemical, SK Gas, and Air Liquide Korea, who jointly established the '3-year-old' corporation Lotte SK Enerute, are accelerating their general hydrogen power generation business.
According to the company on the 7th, a total of 16 projects, including Lotte SK Enerute's Ulsan Hydrogen Power Plant No. 3, Taehwa Hydrogen Power Plant No. 1, and Taehwa Hydrogen Power Plant No. 2, were finally selected in the 2024 general hydrogen power generation bidding announced recently by the Korea Power Exchange.
Accordingly, Lotte SK Enerute won bids for a total of four power generation projects in the general hydrogen power generation bidding, including Ulsan Hydrogen Power Plant No. 2, which was awarded last year and is under construction. This achievement came just over two years after the joint venture was established in September 2022.
The company plans to install one 20MW-class and two 9MW-class eco-friendly hydrogen fuel cell power plants within Lotte Chemical and Lotte Fine Chemical’s Ulsan plants, respectively, and operate them for 20 years starting in 2026. It has secured a stable supply of by-product hydrogen from Lotte Chemical Group and SK Gas subsidiaries.
Unlike other operators, Lotte SK Enerute applies a hydrogen-only model with zero carbon emissions, which has the advantage of enabling fuel conversion without additional equipment changes or modifications when introducing clean hydrogen in the future. By utilizing waste heat generated from the fuel cells, it contributes to energy self-sufficiency and greenhouse gas reduction within the Ulsan industrial complex, thus being classified as an eco-friendly power source. Once all these hydrogen fuel cell power plants are completed, they will be able to supply approximately 290,000 MWh of eco-friendly electricity annually to about 80,000 households (based on four persons per household) in Ulsan.
The joint venture partners, including Lotte Chemical and SK Gas, are planning stable profits and gradual expansion of the hydrogen business based on this achievement. Lotte Chemical expects long-term stable revenue through 20-year long-term power sales contracts related to the three power generation projects that Lotte SK Enerute won this year.
Lee Hoon-ki, CEO of Lotte Chemical, stated, "Lotte SK Enerute is building a future growth foundation by pioneering hydrogen energy businesses such as hydrogen fuel cell power generation and hydrogen charging stations," adding, "Lotte Chemical’s hydrogen business will contribute to creating a green circular ecosystem based on core competencies such as large-scale consumers, mass supply chains, and eco-friendly technologies."
SK Gas is focusing on building a hydrogen ecosystem centered on the Ulsan region, where the world’s first LNG·LPG dual power plant Ulsan GPS and the LNG terminal KET are located. They aim for a full-cycle value chain covering hydrogen introduction, storage, transportation, and utilization. Lotte SK Enerute is responsible for power generation using by-product hydrogen and transportation through hydrogen charging stations within this ecosystem.
Yoon Byung-seok, CEO of SK Gas, said, "Going forward, SK Gas will continue to gradually expand its hydrogen business based on LNG, a low-carbon energy source, and will do its best to achieve the ultimate goal of carbon neutrality."
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