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

■ Since the signing of a hydrogen business cooperation MOU between LOTTE Chemical and SK Gas and between

    LOTTE Chemical and Air Liquide Korea, a three-company joint venture was established for the early landing of the project

    by combining the capacities of the three companies

■ Expected to act as a bridgehead for expanding future businesses such as construction of a fuel cell generator that produces

    500,000MWh annually in Ulsan, and construction of hydrogen charging stations for transportation 

■ Establishment of joint venture scheduled within Q3 through reporting and approval for corporate merger to the Fair Trade Commission..

    Actively utilize capacities possessed by each company for the success of the joint venture    

LOTTE Chemical, SK Gas and Air Liquide Korea will establish a joint venture for the byproduct hydrogen-based generation business and hydrogen business for transportation. 

On the 2nd (Thu) at 10 a.m. on the 76th floor of Jamsil LOTTE World Tower, LOTTE Chemical Basic Materials Business President Hwang Jin-koo, SK Gas CEO Yoon Byung Suk, and Air Liquide Korea President Nicolas Foirien met to hold an event for the establishment of the joint venture.

This joint venture follows the MOUs that LOTTE Chemical signed with SK Gas and Air Liquide Korea in May where the three companies agreed to team up in order to pursue the early landing of the business by combining the each of the company’s capacities related to the hydrogen business. 

The joint venture will be established with LOTTE Chemical, SK Gas and Air Liquide Korea investing 45%, 45%, and 10%, respectively, and it will be jointly operated by LOTTE Chemical and SK Gas. The name of the joint venture has not yet been determined, but it was announced that the businesses are scheduled to be carried out after the establishment of the joint venture in Q3 after completing corporate merger reports and approval from the Fair Trade Commission.

The joint venture will be able to procure byproduct hydrogen generated by LOTTE Chemical and SK Gas, and it will begin its business with the construction of a hydrogen fuel cell generator in Ulsan, which is well equipped with hydrogen infrastructure. 

The hydrogen fuel cell generator that the joint venture will construct will have production capacities of 500,000MWh per year, and this is equivalent to the amount of electricity that 120,000 homes (4-person families) can use in one year. Future plans are to construct hydrogen charging stations at major points nationwide, and there are also plans to review cooperation opportunities in blue/green hydrogen energy. 

Each company plans to actively use the capacities possessed by each company for the success of the joint venture. 

LOTTE Chemical is the nation’s largest byproduct hydrogen producer, and it not only supplies raw materials, but also related business sites in the Ulsan Plant. It also plans to provide a stable business environment early on during the business by procuring clients through its group 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 LGP 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.

LOTTE Chemical Basic Materials Business President Hwang Jin-koo stated, “It is very meaningful in that we have come up with the foundation for the eco-friendly hydrogen market by concentrating the core capacities of each company to form the initial ecosystem for the hydrogen business,” and added, “We will focus LOTTE Chemical’s relevant knowhow and capacities so that it can be a meaningful step towards the hydrogen economy that will be activated in the near future.”

SK Gas CEO Yoon Byung Suk commented, “This joint venture will serve as a crucial primer for the activation of Korea’s hydrogen economy and contribute to the future transition toward a hydrogen society in Korea.” He further stated, “SK Gas will mobilize all of its capacities related to the hydrogen business that it has been preparing to help Korea convert to a hydrogen society.”

Air Liquide Korea President Nicolas Foirien said, “I am very pleased with the opportunity to cooperate with LOTTE Chemical and SK Gas, and I have high expectations that this joint venture partnership will contribute significantly to the development of Korea’s sustainable hydrogen economy. This is also consistent with Air Liquide Group’s climate strategy that aims at contributing to the development of a sustainable future.”