Lotte SK Energy Route Completes 20MW Hydrogen Fuel Cell Power Plant, Begins Supplying Eco-Friendly Electricity

Ulsan Hydrogen Power Unit 2 Begins Operation... 160,000 MWh Annually
Total Capacity to Reach 80 MW by 2026, Boosting Local Economic Growth
Project Financing of 272 Billion Won Successfully Secured

Lotte SK Energy Route has begun operating its second hydrogen fuel cell power plant in Ulsan.

Ulsan Energy Route Unit 2, a wholly owned subsidiary of Lotte SK Energy Route, held a completion ceremony for Ulsan Hydrogen Power Unit 2 on September 29 at the Ulsan Mipo National Industrial Complex in Nam-gu, Ulsan Metropolitan City, and officially commenced operations. This power plant is a 20 MW phosphoric acid fuel cell (PAFC)-based facility dedicated to hydrogen, and it does not emit carbon during the power generation process. A key feature is that even when clean hydrogen is introduced in the future, it can switch fuels without requiring any additional equipment modifications.

Ulsan Hydrogen Power Unit 2 Overview. Lotte SK Energy Route

The event was attended by Ulsan Mayor Kim Doo-gyeom, SK Gas President Yoon Byung-seok, Lotte SK Energy Route Co-CEOs Gil Homoon and Kim Yonghak, Lotte Chemical General Manager Kwak Kiseop, SK Gas General Manager Kim Yongbeom, Air Liquide Korea Vice President Kim Somi, and Doosan Fuel Cell CEO Yoon Jaedong, among other key figures.

Ulsan Hydrogen Power Unit 2 will produce approximately 160,000 MWh of eco-friendly electricity annually, enough to supply about 40,000 households in Ulsan (based on a family of four). Additionally, by recycling waste heat from the fuel cells, the plant contributes to greenhouse gas reduction, earning recognition as a power infrastructure that combines both environmental sustainability and efficiency.

Lotte SK Energy Route plans to sequentially expand its hydrogen fuel cell power plants to a total capacity of 80 MW by the end of 2026, starting with this completion. Once fully completed, the facilities will be able to supply about 610,000 MWh of carbon-free electricity per year, enough to power 160,000 households in Ulsan.

Perspective view of Ulsan Hydrogen Power Units 1, 2, and 3. Lotte Chemical

This project will be stably operated for the next 20 years based on by-product hydrogen supplied by SK Gas subsidiaries and Lotte Chemical affiliates. In addition, the company aims to contribute to the local economy through increased tax revenue for Ulsan and by creating direct and indirect jobs in the region.

To implement this project, Lotte SK Energy Route completed project financing (PF) totaling 272 billion won on September 9. Five financial institutions, including KB Kookmin Bank, participated as lead arrangers, and the funds were raised entirely through senior loans.

Co-CEO Kim Yonghak stated, "We will continue to expand our related businesses in line with the government's eco-friendly energy transition policies and grow together with the local community." Co-CEO Gil Homoon added, "The completion of Ulsan Hydrogen Power Unit 2 marks a significant step toward achieving carbon neutrality in Ulsan, a key city for the hydrogen economy. We will continue to expand our clean hydrogen business and lead the way in energy transition and achieving net zero."

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