South Korean Lotte Chemical announced today its ‘Every Step for H2’, an eco-friendly hydrogen growth roadmap, with the goal of supplying 30% of domestic hydrogen demand along with achieving carbon-neutral growth by 2030.
Lotte Chemical plans to invest about KRW 4.4 trillion in stages by 2030 to achieve sales of KRW 3 trillion and an operating profit rate of 10%.
In February, Lotte Chemical BU declared ‘Green Promise 2030’, which is an ESG management strategy and eco-friendly goal, to respond to climate crisis, create a green ecosystem, virtuous cycle of resources, and promote eco-friendly projects. The hydrogen roadmap announced this time materializes the hydrogen business goal and direction to achieve carbon neutrality by 2040 following carbon-neutral growth in 2030, and to increase sales of eco-friendly businesses while reducing environmental impact substances.
Lotte Chemical plans to realize the hydrogen business roadmap based on its core competencies such as ▲large-scale consumers ▲mass supply chain ▲eco-friendly technology.
Specifically, Lotte Group’s logistics and distribution infrastructure, large-scale consumers that can utilize fuel cells and turbines within its business sites, and a large-scale holding network that can supply large quantities to hydrogen charging stations and power plants. It plans to further develop its eco-friendly technological capabilities such as hydrogen tanks, carbon capture technology, and green ammonia pyrolysis.
Based on these core competencies, it plans to lead the development of ▲clean hydrogen production ▲hydrogen utilization business ▲hydrogen business technology.
First, it plans to lead the production of clean hydrogen and produce 600,000 tons of clean hydrogen by 2030. Based on the by-product hydrogen being produced, 160,000 tons of blue hydrogen will be produced by 2025 using carbon capture technology. By completing the green hydrogen value chain in 2030, it plans to produce 600,000 tons of clean hydrogen that is a mixture of blue hydrogen (160,000 tons) and green hydrogen (440,000 tons).
It will also lead the domestic hydrogen utilization business. In 2024, the Ulsan area fuel cell power plant will be operated. It plans to build 50 liquid hydrogen charging stations by 2025 and gradually expand to 200 complex charging stations by 2030, contributing to the formation of the domestic hydrogen mobility ecosystem. In addition, by introducing a fuel cell power plant and a hydrogen turbine generator in the business site, the company plans to operate an eco-friendly plant with carbon-reduced power.
Based on its capabilities, it will also lead the development of hydrogen business technology. Through the development of high-pressure tanks for hydrogen storage, the company aims to mass-produce 100,000 hydrogen tanks by 2025 and expand production to 500,000 hydrogen tanks in 30 years to be applied to hydrogen cars and commercial vehicles. It plans to contribute to carbon neutrality by applying CCU/CCS (Carbon Capture Utilization/Storage) technology step by step, and at the same time develop ammonia pyrolysis and green hydrogen production technology.
Hwang Jin-goo, CEO of Lotte Chemical’s basic materials business, said, “From the perspective of preemptive investment, we want to promote infrastructure construction without any setbacks in the early stages.” “When the era of green hydrogen arrives, the green hydrogen produced will be put into the established supply chain to help consumers We will provide timely supply to each application sector so that people can use eco-friendly consumption without worrying about carbon.” He added, “I hope that the green circulation ecosystem led by Lotte Chemical will contribute to our eco-friendly and prosperous life.”
Meanwhile, Lotte Chemical is building cooperative relationships with various companies in preparation for the expansion of the hydrogen economy.
In March, we installed a CCU (carbon capture and utilization) technology demonstration facility using gas separation membrane for the first time in the domestic chemical industry in Yeosu Plant 1, and in April, Samsung Engineering and domestic and overseas business sites improved energy efficiency and reduced greenhouse gas and environmental impact substances. , signed a business agreement for joint participation in carbon capture and utilization technology development, green hydrogen business, and technology licensing.
In addition, a business agreement was signed in May to jointly invest in the construction of a new high-pressure hydrogen shipping center and hydrogen charging station using by-product hydrogen from Air Liquide Korea and Lotte Chemical, and to expand the development of the mobility market nationwide, starting with the metropolitan area. concluded Next, with the resources and capabilities of both SK Gas and the two companies, the cooperation system will be expanded in the future, starting with the construction of a gaseous hydrogen charging station and a hydrogen fuel cell power plant, and the business model across the hydrogen value chain, such as the supply of liquid hydrogen produced using LNG cold heat. decided to proceed with the construction.