Chemical Industry Accelerates Renewable Business Restructuring... Entry into Hydrogen Business, etc. (Comprehensive)

Hydrogen Refueling Station Construction and New Technology Investment
Focusing on Eco-Friendly Plastic Capabilities

Hydrogen charging station in Gangdong-gu, Seoul. (Image source=Yonhap News)

[Asia Economy Reporter Moon Chaeseok] The chemical industry conveyed a message to shareholders ahead of the regular general meeting of shareholders that it will accelerate the restructuring of new renewable energy businesses such as hydrogen. Lotte Chemical announced that it will speed up its hydrogen business, including building hydrogen charging stations and new investments in new technology operators. SK Chemical newly appointed SK Discovery President Ahn Jaehyun, who has extensive experience in renewable energy and mergers and acquisitions (M&A), as an inside director, and is expected to increase investments in related fields.

According to the Financial Supervisory Service on the 4th, the two companies disclosed changes in business objectives, agenda items for the general meeting, and the appointment of new inside directors through the convocation resolution documents sent about two weeks before the general meeting held the previous afternoon.

Lotte Chemical included "entry into the hydrogen tank business and hydrogen charging station operation business" in the detailed changes to its business objectives. Since it signed a memorandum of understanding (MOU) last year with Air Liquide and SK Gas, it is expected to take a more active approach to the hydrogen business. With Air Liquide, they agreed to collaborate on a high-pressure hydrogen shipment center and hydrogen charging station construction business using by-product hydrogen, and with SK Gas, they will cooperate in the gas hydrogen charging station and hydrogen fuel cell power plant businesses. Last year, Lotte Chemical became the first chemical company to establish a KRW 50 billion ESG (Environmental, Social, and Governance) dedicated fund, laying the groundwork for financing business restructuring.

The addition of "investment in new technology operators and other investment-related businesses" to the business objectives also draws attention. This suggests an acceleration in securing technologies such as clean hydrogen production and carbon capture, utilization, and storage (CCUS). Kim Kyohyun, Vice Chairman and CEO of Lotte Chemical, said, "Through organic cooperation among chemical business unit (BU) affiliates, we will create added value in the hydrogen business and actively collaborate with group affiliates to realize the hydrogen business roadmap."

SK Chemical appointed President Ahn Jaehyun as a new inside director and reappointed President Jeon Gwanghyun as CEO. Along with CEO Kim Cheol, the board will consist of three inside directors and four outside directors, totaling seven members. President Ahn took office as president of SK Construction (now SK Ecoplant) in 2019 and successfully led the business structure transformation of SK Ecoplant toward eco-friendly and new energy sectors. Within SK Group, he is known as an expert in investment and M&A. Accordingly, the industry speculates that SK Chemical may expand investments related to renewable energy.

SK Chemical is focusing its capabilities on eco-friendly plastic materials after reorganizing its composite materials and PPS (polyphenylene sulfide) businesses last year. Through SK Multi-Utility, a district energy business specialist company established by a physical division in December last year, it is transitioning its power supply business centered on coal power generation to liquefied natural gas (LNG). It plans to start construction of an LNG power plant on 37,600㎡ (about 11,400 pyeong) of idle land within the Ulsan Petrochemical Complex in June. An SK Chemical official said, "It is more appropriate to view the appointment of President Ahn not as a restructuring of new businesses but as a change in the board composition and strengthening of new business portfolio promotion."

This content was produced with the assistance of AI translation services.