Lotte Chemical’s Yeosu petrochemical complex. (image: Lotte Chemical)
SEOUL, June 3 (Korea Bizwire) — Lotte Chemical Corp., the petrochemical unit of South Korean conglomerate, said Thursday it will establish a joint venture with SK Gas Co., a liquefied petroleum gas (LPG) importer and distributor, for power generation with by-product hydrogen and hydrogen-powered transportation.
The joint venture will be established in the third quarter of this year.
Lotte Chemical and SK Gas will each have a 45 percent stake while Air Liquide Korea, the local unit of France-based industrial gas supplier Air Liquide S.A., will hold a 10 percent stake.
The venture will be managed jointly by Lotte Chemical and SK Gas.
The joint venture’s first project will be the construction of a hydrogen fuel-cell power plant in Ulsan, 414 kilometers southeast of Seoul. The plant will have the capacity of producing 500,000 megawatt-hours (MWh) of electricity annually.
Lotte Chemical will be responsible for supplying raw materials and providing the business site within its Ulsan plant.
SK Gas will be in charge of supplying by-product hydrogen through its affiliates in Ulsan, while providing power generation capability and LPG filling station network and know-how.
Air Liquide Korea will be responsible for providing professional knowledge and related technology in the areas of hydrogen charging stations and hydrogen supply networks and distribution.
Kevin Lee (kevinlee@koreabizwire.com)
