LOTTE Chemical - SK Gas - Air Liquide Korea Established Joint Venture ‘LOTTE SK Eneroot’ for Hydrogen Business

■ Completed approval for domestic/foreign company merger... Confirmed joint venture name and co-CEOs

■ Plans to construct byproduct hydrogen fuel cell generator with an annual scale of 50,000 MWh in Ulsan  

■ Plans to invest approximately 300 billion KRW on an area of about 12,200 square meters at the LOTTE Chemical Ulsan Plant

LOTTE Chemical, SK Gas and Air Liquide Korea announced that they have completed the establishment of a joint venture for the byproduct hydrogen-based generation business and hydrogen business for transportation.

This joint venture named ‘LOTTE SK Eneroot’ completed corporate merger approval by five nations including Korea in September and confirmed the company name and co-CEOs. 

The newly confirmed company name <LOTTE SK Eneroot> contains the meaning ‘a company like strong roots that does not waver in the new future energy industry.' The first co-CEOs are LOTTE Chemical Hydrogen Energy Business Division Executive Director Kim Yong-hak and SK Gas Hydrogen Business Vice President Shim Young-sun, and they also completed discussions on personnel composition for initial business operation. 

As its first project, plans to invest approximately 300 billion KRW in area of 12,200 square meters at the LOTTE Chemical Ulsan Plant to construct a byproduct hydrogen fuel cell generator, and is slated to begin business by the first half of 2025. For this, applications for authorization and licensing for the fuel cell generation business will be submitted by October of this year. This generator will have an annual 500,000 MWh power production capacity, and this is enough power that can be used by a total of 120,000 four-person households for a year. 

plans to construct a hydrogen fuel cell generator and build hydrogen charging stations in major bases within the nation, and it will also review business opportunities for clean hydrogen/ammonia. 

Meanwhile, for the stable operation of the hydrogen fuel cell generator of the joint venture, LOTTE Chemical, which is the nation’s largest byproduct hydrogen producer, will supply raw materials and related business sites at the Ulsan Plant, and it also plans to provide a stable business environment by procuring hydrogen mobility clients via the group’s subsidiaries.

SK Gas plans to procure byproduct hydrogen through its partners in Ulsan to supply the product, and it will also utilize its generator business capacities and LPG charging station network and knowhow for the long-term growth of the joint venture. 

Air Liquide Korea is a global company possessing world-class technologies in the industrial gas sector, and it will provide its expertise and technologies for not only hydrogen charging stations, but also on hydrogen supply chains and distribution.