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The SK Group and Lotte Group agreed to establish a joint venture (JV) within 2021 to strengthen their existing hydrogen infrastructure and create new revenue streams using hydrogen.
The JV will be established by the groups' subsidiaries SK Gas and Lotte Chemical.
The JV will supply byproduct hydrogen produced at SK Advanced’s Ulsan plant and at Lotte Chemical’s Yeosu, Daesan, and Ulsan plants to hydrogen charging stations across South Korea and other industries that require hydrogen.
The JV is set to build 100 hydrogen charging stations in South Korea mainly using SK Gas’s LPG charging station sites and Lotte Group’s distribution centers.
The JV will also produce liquefied hydrogen using the cold energy generated during liquefied natural gas (LNG) production processes.
Lastly, the venture will build hydrogen fuel cell plants, probably in Ulsan where there is a well-established hydrogen infrastructure.
SK Gas has a track record in hydrogen fuel cell plant construction and is building one in Gwangju city.
SK Gas CEO Yoon Byung-suk sees the partnership with Lotte Chemical to set an example for South Korea’s hydrogen business.
