Lotte SK Enerute Signs PF Financing Agreement for 20MW Hydrogen Fuel Cell Power Generation

Signed Project Financing Agreement Worth 77.2 Billion KRW with Kookmin Bank and Two Other Institutions

A bird's-eye view of Lotte SK Enerute's hydrogen fuel cell power plant. Photo by Lotte SK Enerute

Lotte SK Enerute, a 100% subsidiary, announced on the 31st that its 'Ulsan Enerute 2' has signed a project financing (PF) worth 77.2 billion KRW for the 20 MW scale 'Ulsan Hydrogen Power 2 Hydrogen Fuel Cell Power Generation Project.' The main lenders include Kookmin Bank, Kyobo Life Insurance, and Hyundai Marine & Fire Insurance, and the funds are raised solely through senior loans.

This project is being promoted after Lotte SK Enerute was selected as a business operator in the general hydrogen power generation bidding market opened by the government in the first half of last year. The 20 MW eco-friendly hydrogen fuel cell power plant to be built within the Lotte Chemical Ulsan plant is expected to produce approximately 160,000 MWh of electricity annually starting from June 2025. By stably receiving by-product hydrogen from SK Gas subsidiaries and the Lotte Chemical group, the produced electricity will be sold to Korea Electric Power Corporation at a fixed price for 20 years.

In particular, unlike other operators, Lotte SK Enerute's hydrogen fuel cell power generation applies a phosphoric acid fuel cell (PAFC) hydrogen-only model that emits no carbon during the power generation process. When clean hydrogen is introduced in the future, fuel conversion is possible without additional equipment changes, and it also has the advantage as an eco-friendly power source by contributing to greenhouse gas reduction through the utilization of fuel cell waste heat.

Once the hydrogen fuel cell power plant is completed, it is expected to stably supply eco-friendly electricity to about 40,000 households (based on four persons) in Ulsan. It is also expected to contribute to the win-win development of the local economy by increasing Ulsan city tax revenue and creating direct and indirect employment within the region.

Shim Young-sun, co-CEO of Lotte SK Enerute, said, "This project is meaningful in that it responds to the government's hydrogen energy promotion policy while laying the foundation for creating a hydrogen ecosystem in the Ulsan region." He added, "We will continue to expand clean hydrogen and ammonia businesses to fully achieve the 2050 carbon neutrality goal."

Kim Yong-hak, co-CEO of Lotte SK Enerute, said, "Through this hydrogen fuel cell power generation project, we have been able to contribute to the government's hydrogen economy activation policy and regional economic revitalization." He added, "We will steadily expand eco-friendly power generation projects with zero carbon emissions."

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