Lotte Chemical to invest $3.8 bn to produce 600,000 tons of hydrogen by 2030

[Source: Lotte Chemical Corp.]

South Korea’s Lotte Chemical Corp. will invest 4.4 trillion won ($3.8 billion) to produce 600,000 tons of hydrogen with recycled gas by 2030, hoping the business will generate revenue of 3 trillion won on profit margin of 10 percent.

The traditional carbon emitter aims to meet 30 percent of domestic hydrogen demand and carbon neutrality by 2030 on its hydrogen growth roadmap under the ESG initiative Green Promise 2030 unveiled on Tuesday.

To achieve that goal, Lotte Chemical plans to use the logistics and distribution infrastructure of Lotte Group, factory sites to apply hydrogen fuel cells and turbines and massive supply network like charging stations and power plants. It also is planning to focus on enhancing technical capabilities in hydrogen tank, carbon capture and thermal decomposition of green ammonia.

Lotte Chemical based on its technical and infrastructure capabilities targets to produce 600,000 tons of hydrogen by 2030. By 2025, it aims to produce 160,000 tons of blue hydrogen, which is created from natural gas with carbon capture and storage technology scooping up the resulting carbon dioxide.

To lead the hydrogen project at home, the company will start operation of hydrogen fuel cell plant in Ulsan from 2024, build 50 liquid hydrogen charging stations by 2025 and add hydrogen charging facilities to up to 200 existing gas stations by 2030.

[Source: Lotte Chemical Corp.]

Hydrogen fuel cell power plants and turbine generators will also be installed at its factory sites to run eco-friendly manufacturing plants with reduced carbon emissions.

As for technical advancement, Lotte Chemical will work on development of high-pressure tanks for hydrogen storage. It is aiming to mass-produce 100,000 hydrogen tanks by 2025 and increase the number to 500,000 units by 2030 for application to hydrogen vehicles.

Carbon capture and storage technology will be nurtured to meet carbon neutrality, together with thermal decomposition of ammonia and production of green hydrogen.

“The company will successfully establish hydrogen infrastructure from the initial stage in order not to miss the opportunity for preemptive investment. Through the efforts, we hope to lead the industry ecosystem with timely supply of green hydrogen,” said Hwang Jin-goo, president of basic material business at Lotte Chemical.

Lotte Chemical under the ambitious hydrogen vision has expanded its corporate partnership with various names including Samsung Engineering, Air Liquide Korea and SK Gas.

Lotte Chemical shares closed 5.49 percent higher at 269,000 won in Seoul trading on Tuesday.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]