▲LOTTE SK ENEROOT

■ General hydrogen generation bidding market of first half of ‘23 results in final selection of ‘Ulsan ENEROOT 2’, a subsidiary 100% invested in by LOTTE SK ENEROOT
■ Construction of 20MW-class hydrogen fuel cell generator at the LOTTE Chemical Ulsan Plant... Create stable profits through 20 years of operation starting in '25

Results of the general hydrogen generation bidding market for the first half of ‘23 announced by the Ministry of Trade, Industry and Energy ended with the final selection of five businesses including Ulsan ENEROOT 2, which was 100% invested in by LOTTE SK ENEROOT.

LOTTE SK ENEROOT is a joint venture established in September of last year by LOTTE Chemical (45%), SK Gas (45%) and Air Liquide Korea (10%) for byproduct hydrogen-based generation businesses and hydrogen for transportation businesses.

LOTTE SK ENEROOT will install a 20MW-class eco-friendly hydrogen fuel cell generator within the LOTTE Chemical Ulsan Plant and is scheduled to operate it for 20 years starting in ‘25. It has secured stable supply of byproduct hydrogen from the LOTTE Chemical unit and SK Gas subsidiaries.

Unlike other businesses, it applied a hydrogen-exclusive model that has no carbon emissions, so when clean hydrogen is implemented in the future, fuel can be transitioned without additional equipment changes or modifications. Furthermore, it has the advantage of being an eco-friendly power generation source that uses waste heat of fuel cells, thereby contributing to reducing greenhouse gases.

Once the hydrogen fuel cell generator is completed, it can supply about 160,000 MWh of eco-friendly electricity to about 40,000 households (family of four) in Ulsan, and it will contribute in promoting the local economy through increased tax revenue of Ulsan and indirect/direct job creation effects in the region.

Since launching the hydrogen energy business group in April of last year, LOTTE Chemical has been pursuing cooperating with various domestic and foreign partners, while leading the construction of the domestic hydrogen ecosystem. Through this bid, LOTTE SK ENEROOT entered a 20-year-long contract, and took its first step in expanding its business sector into the energy industry through which stable profits can be expected in the petrochemical industry, which has high volatility.

LOTTE Chemical Hydrogen Business Group CEO Hwang Jin Koo commented, “We are speedily carrying out future businesses to achieve our 2030 Vision and this winning big is the first achievement of our hydrogen energy business. We will use this as a foothold to further accelerate our hydrogen energy business.”