■ As a result of bidding for general hydrogen power generation in ‘24, LOTTE SK ENEROOT’s ‘Ulsan Hydrogen Power No. 3,’ ‘Taehwa Hydrogen Powder No. 1’, and ‘Taehwa Hydrogen Power No. 2’ have finally been selected.
■ LOTTE Chemical’s affiliate constructed an eco-friendly hydrogen fuel cell power generation plant for 38MW within Ulsan Plant to operate for 20 years from ’26 for stable profit generation.
■ Uses the waste heat from the fuel cells to supply energy and contribute to reducing greenhouse gas within Ulsan Industrial Complex.

On the 30th, Korea Power Exchange announced the results of the 2024 general hydrogen power bidding, and a total of 16 projects, including LOTTE SK Eneroot's Ulsan Hydrogen Power No. 3 and Taehwa Hydrogen Power No. 1 and No. 2, were selected. With this achievement, LOTTE SK Eneroot has secured a total of four hydrogen power projects through the general hydrogen power bidding, including Ulsan Hydrogen Power No. 2, which was awarded last year and is currently under construction. LOTTE SK Eneroot plans to install one 20MW and two 9MW eco-friendly hydrogen fuel cell power plants within LOTTE Chemical and LOTTE Fine Chemical’s Ulsan Plant to operate them for 20 years from 2026. The Company has also secured a stable supply of byproduct hydrogen from subsidiaries of LOTTE Chemical Group and SK Gas.

In particular, LOTTE SK Eneroot differentiates itself from other operators by applying a hydrogen-exclusive model with no carbon emission for fuel conversion without any additional facility change or modification when introducing clean hydrogen in the future. By utilizing waste heat generated from fuel cells, the Company will supply energy and contribute to reducing greenhouse gas Ulsan Industrial Complex, reinforcing its role as an eco-friendly energy source.

Once all these hydrogen fuel cell power plants are completed, they are expected to supply approximately 290,000 MWh of eco-friendly electricity annually, sufficient for around 80,000 households in Ulsan (based on four-person households). This initiative will not only increase tax revenues for Ulsan, which has been designated as a hydrogen pilot city, but also boost the local economy.

LOTTE Chemical continues to lead the establishment of the domestic hydrogen ecosystem by collaborating with various partners, both locally and internationally. Similar to the 20MW hydrogen fuel cell power project awarded last year, the three projects awarded this year will also be secured under 20-year long-term power purchase agreements. This represents a further step for LOTTE Chemical in expanding its presence in the energy industry, aiming for stable, long-term revenues.

Lee Hun ki, the President & CEO of LOTTE Chemical, said, "LOTTE SK Eneroot is building the foundation for future growth by leading the hydrogen energy business, including hydrogen fuel cell power generation and hydrogen refueling stations.” “LOTTE Chemical’s hydrogen business will contribute to creating a green circular ecosystem, based on core competencies such as large-scale consumption, extensive supply chains, and eco-friendly technologies."

SK Gas, under the vision to become a "Net Zero Solution Provider," is steadily building a hydrogen ecosystem centered around the Ulsan region, where the world's first LNG-LPG dual power plant, Ulsan GPS, and the LNG terminal KET are located. The Company aims to establish a full-cycle value chain covering the introduction, storage, transport, and utilization of hydrogen, with LOTTE SK Eneroot managing power generation using byproduct hydrogen and hydrogen refueling stations for the transport sector.

Yoon Byung Suk, the CEO of SK Gas, commented, "We are particularly pleased that LOTTE SK Eneroot has achieved success for two consecutive years, following its recognition last year as the world's first general hydrogen power operator.” “SK Gas will continue to expand the hydrogen business, leveraging low-carbon energy such as LNG, and will make every effort to achieve our ultimate goal of carbon neutrality."