Ulsan Hydrogen Power No.2, the carbon-free eco-friendly hydrogen fuel cell power plant fully funded by LOTTE SK Eneroot, celebrated the completion ceremony.

Ulsan Hydrogen Power No.2 is a hydrogen-dedicated power plant based on phosphoric acid fuel cells (PAFC) that does not emit carbon during the power generation process. A key feature is that once clean hydrogen is introduced in the future, fuel conversion will be possible without additional facility modifications.

In addition, the power plant recycles waste heat from fuel cells to contribute to greenhouse gas reduction, making it an infrastructure that combines eco-friendliness with efficiency and is expected to play a pivotal role in realizing the hydrogen economy and expanding the ecosystem.

Starting with the 20-MW-scale Ulsan Hydrogen Power No.2, LOTTE SK Eneroot plans to sequentially complete hydrogen fuel cell power plants with a total capacity of 80 MW by the end of next year. Through this, it aims to produce approximately 610,000 MWh of carbon-free eco-friendly electricity annually, which is enough to power around 160,000 households in Ulsan (based on a family of four).

This project will also be stably operated for the next 20 years by receiving by-product hydrogen from SK Gas subsidiaries and the LOTTE Chemical Group, contributing to local tax revenues and generating both direct and indirect employment, thereby fostering mutual growth in the regional economy.

Furthermore, LOTTE SK Eneroot fully funded the project by securing a project financing (PF) package worth KRW 272 billion on the 9th for the construction of Ulsan Hydrogen Power No.2 and follow-up projects. The PF was arranged with the participation of five financial institutions, including KB Kookmin Bank as the lead arranger, and was raised entirely through senior lien.

Kim Yong-hak, Co-CEO of LOTTE SK Eneroot, stated, “Starting with this hydrogen fuel cell power generation project, we will continue to expand related businesses to support the government's eco-friendly energy transition policy and will strive to grow together with local communities.”

Gil Ho Moon, another Co-CEO of LOTTE SK Eneroot, remarked, “The completion of Ulsan Hydrogen Power No.2 marks another significant step forward for Ulsan, the core hub of Korea's hydrogen economy, and for LOTTE SK Eneroot in achieving carbon neutrality.” He added, “We will continue to expand our clean hydrogen business, accelerate the nation’s energy transition, and do our utmost to achieve net-zero.”