SK Gas, Lotte Chem, Air Liquide tie up on H2 projects

South Korean petrochemical producer Lotte Chemical, importer SK Gas and industrial gas supplier Air Liquide Korea have signed an agreement to set up a joint venture to establish hydrogen businesses in South Korea.

The joint venture will build a hydrogen fuel cell power plant in Ulsan, Lotte Chemical said on 2 June, without providing further details such as the targeted launch date. Lotte Chemical will supply hydrogen for the plant and help secure demand for hydrogen fuel cells through affiliates in the Lotte group.

Lotte Chemical said it is the largest by-product hydrogen producer in South Korea. The firm operates petrochemical units across its production sites in Yeosu, Daesan and Ulsan, and petrochemical complexes typically produce hydrogen as a by-product.

The planned hydrogen fuel cell power plant is expected to have a generation capacity of 500,000 MWh/yr, equivalent to the amount of power that 120,000 four-person households use in a year. The joint venture will then establish hydrogen charging stations nationwide and examine opportunities for further collaborations in blue and green hydrogen.

SK Gas also plans to secure and supply by-product hydrogen to the plant through its affiliates in Ulsan. Air Liquide Korea will provide expertise and related technologies for hydrogen supply chain and distribution, as well as for hydrogen charging stations.

The companies signed an initial agreement in May 2021 to co-operate on hydrogen businesses. Lotte Chemical and SK Gas will each hold a 45pc stake in the joint venture, with Air Liquide Korea taking the remaining. The joint venture will be managed by Lotte Chemical and SK Gas. The companies are targeting to establish the joint venture within the third quarter of this year after receiving approval from the Korea Fair Trade Commission.

By Tng Yong Li