Lotte SK Enerute Begins Commercial Operation of 20MW
'Ulsan Hydrogen Power Unit 2'
Four Units to Be Commercialized by 2026, Totaling 80MW
Lotte SK Enerute, a hydrogen joint venture established by SK Gas, Lotte Chemical, and Air Liquide Korea, has commenced commercial operation of its first hydrogen fuel cell power plant. The facility will supply approximately 160 GWh of eco-friendly electricity annually to the Ulsan region, where large-scale power demand is concentrated.
Lotte SK Enerute announced on the 25th that it has officially started commercial operation of 'Ulsan Hydrogen Power Unit 2', which was established within the Lotte Chemical Ulsan Plant in Namgu, Ulsan. The facility has a capacity of 20 MW. After being selected as a project operator in the first half of 2023 through the general hydrogen power generation bidding market, which was introduced that year, construction began in March 2024. Following the procurement of project financing (PF) totaling approximately 77.2 billion KRW, the facility has now entered full-scale operation.
A view of 'Ulsan Hydrogen Power Unit 2' established within Lotte Chemical Ulsan Plant in Namgu, Ulsan. Lotte SK Enerute announced on the 25th that the power generator has officially started commercial operation. SK Gas
Ulsan Hydrogen Power Unit 2 plans to stably produce electricity for the next 20 years using by-product hydrogen supplied by SK Gas subsidiaries and Lotte Chemical affiliates. Starting from the commercial operation date, it will generate about 160 GWh of electricity annually for 20 years. This amount of electricity is sufficient to power approximately 40,000 four-person households for one year.
Notably, the power plant applies a 'hydrogen-only fuel cell' model that emits zero carbon, and it is designed to allow fuel conversion to clean hydrogen (blue or green hydrogen) in the future without requiring additional facility modifications. In addition, by recycling waste heat generated during fuel cell operation, the plant can improve energy efficiency and contribute to reducing greenhouse gas emissions, which is why it is attracting attention as a next-generation power source. Positive ripple effects on the local economy are also expected. The expansion of distributed power sources within Ulsan is anticipated to increase tax revenue and create both direct and indirect employment opportunities.
Since its establishment in September 2022, Lotte SK Enerute has been expanding its business with the goal of building a full-cycle hydrogen infrastructure, including hydrogen distribution, power generation, and hydrogen refueling station operations. Starting with the commercial operation of this Unit 2, a total of four hydrogen fuel cell power plants are scheduled to be commercialized sequentially by November 2026, with cumulative generation capacity expected to reach 80 MW.
SK Gas CEO Yoon Byungseok stated, "This commercial operation is the first tangible achievement toward realizing a hydrogen economy and serves as a symbolic milestone for building a hydrogen ecosystem. We will lead the transition to sustainable energy." Lotte Chemical CEO Lee Youngjun also commented, "The commencement of this operation marks a meaningful start in realizing Lotte Chemical's vision for a sustainable future. We will continue to enhance our core competencies across the entire hydrogen value chain, from production and distribution to utilization and technology development."
Meanwhile, Lotte SK Enerute is a hydrogen-specialized joint venture in which SK Gas and Lotte Chemical each hold a 45% stake and Air Liquide Korea holds a 10% stake. The company is currently engaged in hydrogen-based power generation, distribution, and the construction of hydrogen refueling stations.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
