Lotte Chemical and SK Gas to form JV to pursue hydrogen biz

[Photo by Lotte Chemical Corp.]

Lotte Chemical Corp. and SK Gas have agreed to establish a joint venture to cooperate for hydrogen business.

The two companies signed a business agreement on Monday in Seongnam, Gyeonggi Province, to join forces to build hydrogen charging stations and hydrogen fuel cell power plants. Based on the infrastructure, they aim to complete hydrogen supplying value chain.

They will carry out a byproduct hydrogen-based business in Ulsan through the JV. Byproduct hydrogen, hydrogen that can be generated from petrochemical manufacturing, is a low-carbon and highly economic fuel.

Lotte Chemical is producing byproduct hydrogen at its three manufacturing lines in Yeosu, Daesan and Ulsan, and SK Gas through its affiliate SK Advanced.

[Photo by Lotte Chemical Corp.]

The two companies will establish hydrogen charging stations and hydrogen fuel cell power plants by using their properties and infrastructure such as SK Gas’ LPG charging stations. After that, they will build around 100 hydrogen charging stations by supplying liquefied hydrogen created from LNG cold energy.

“The cooperation with SK Gas will play a significant role in strengthening our environmental value,” said Kim Gyo-hyun, head of the chemical business unit of Lotte Chemical. “We will establish an ecosystem for hydrogen business that will be at the center of the future energy industry, and lead the hydrogen market.”

SK Gas CEO Yoon Byung-seok said he expects the partnership will become a model for the hydrogen business in Korea. “We will be leading the efforts in creating hydrogen ecosystem by collaborating with other companies, and integrating the LPG business with LNG and hydrogen business to develop a more stable and future-oriented business portfolio,” he said.

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