Lotte Chemical, SK Gas, and Air Liquid Korea are forming a triangular hydrogen partnership. Using by-product hydrogen, form a joint venture to build and run a hydrogen fuel cell power plant. It also works closely with the transportation hydrogen and hydrogen filling station industries. It is anticipated that it will play a significant role in the development of a domestic hydrogen value chain.
Lotte Chemical inked a memorandum of understanding (MOU) for hydrogen business collaboration with SK Gas and Air Liquid Korea in May of last year. Following that, the three firms’ desires for a quick resolution of the hydrogen industry coincided, resulting in the formation of a joint venture.
SK Gas, Lotte Chemical, and Air Liquid Korea will each have a 45 percent, 45 percent, and 10% share in the joint venture, respectively. The amount of the contribution isn’t revealed. The firm will be managed jointly by Lotte Chemical and SK Gas. The firm’s name is still being selected, but the objective is to launch the company in the third quarter of this year, after the Fair Trade Commission’s combined report and approval.
The development of a hydrogen fuel cell power plant in Ulsan is the first project. SK Gas and Lotte Chemical can obtain by-product hydrogen in Ulsan, and the hydrogen infrastructure is pretty well equipped. The launch date of the power plant will be determined when the joint venture is established.
The power station plans to produce 500,000 megawatt-hours of energy each year. This is the amount that 120,000 households (based on four people) can spend in a year. Then, in the mid-to-long term, hydrogen charging stations will be installed on important bases around the country, and clean hydrogen cooperation will be examined.
Despite the fact that Lotte Chemical and SK Gas are strong in energy and materials, this is the first time a hydrogen fuel cell power plant is being built. Through an equity venture, SK Gas is running a fuel cell power plant in Gwangju alongside East-West Power, but the fuel is LNG (liquefied natural gas). The first test for a fuel cell power plant is Lotte Chemical.
Lotte Chemical is the country’s leading producer of by-product hydrogen. It supplies linked business areas within the Ulsan facility in addition to supplying raw materials. We want to create a solid business environment in the early phases of the company by securing demand sources through the group’s affiliates.
Through its Ulsan affiliates, SK Gas acquires and distributes by-product hydrogen. It will drive the joint venture’s long-term growth by using its current power production business skills, as well as its LPG charging station network and operational know-how.
Not only will Air Liquid Korea provide knowledge and associated technology for hydrogen filling stations, but also for the hydrogen supply chain and distribution.
“It is highly significant to establish the basis for an eco-friendly hydrogen market by consolidating each company’s core skills to form an ecosystem in the early stages of the hydrogen industry,” said Hwang Jin-goo, CEO of Lotte Chemical’s Basic Materials Business. “We’ll concentrate our expertise to make it happen,” he stated.
“I anticipate the joint venture to act as a significant catalyst for rejuvenating our hydrogen economy,” said Byung-seok Yoon, CEO of SK Gas. “I’ll do it,” he stated.
Poo Ariang, CEO of Air Liquid Korea, said, “We are really glad to partner with Lotte Chemical and SK Gas.”
