Hydrogen joint venture started by Lotte Chem, SK Gas, Air Liquide Korea

Lotte Chemical, SK Gas and Air Liquide Korea established a hydrogen joint venture named Lotte SK Eneroot, the companies said Friday.

Lotte Chemical, SK Gas and Air Liquide Korea established a hydrogen joint venture named Lotte SK Eneroot, the companies said Friday.

Lotte Chemical and SK Gas hold 45 percent each, while Air Liquide Korea holds the remaining 10 percent.

The new joint venture named SK Gas Vice President Shim Young-sun and Lotte Chemical Vice President Kim Yong-hak as co-CEOs, according to the companies.

The announcement came four months after the three companies signed an agreement to start the joint venture. Lotte SK Eneroot plans to invest 300 billion won ($212 million) in constructing a power plant that generates electricity from hydrogen fuel cells at a 3,700-pyeong (131,657-square-foot) site at Lotte Chemical's plant in Ulsan.

The fuel cell power plant will use byproduct hydrogen to generate 500,000 megawatt-hours of electricity a year, which is enough to power 120,000 households.

Lotte SK Eneroot will apply for an electricity generation business license this month. The commercial operation of the plant is scheduled to begin in the first half of 2025.

The company also hopes to build hydrogen fueling stations nationwide and look for business opportunities in green hydrogen and ammonia.

For the plant construction project, Lotte Chemical will provide the site for the plant and byproduct hydrogen.

SK Gas, a liquefied petroleum gas (LPG) supplier, will also provide byproduct hydrogen to the factory. The company said that it plans to use its capabilities and experience in operating LPG stations for the long-term growth of Lotte SK Eneroot.

Air Liquide Korea, a local subsidiary of France-based gas company Air Liquide, will offer technology and know-how related to hydrogen fueling stations as well as a hydrogen supply chain and distribution network.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]