Lotte Chem considers investment in world’s largest clean hydrogen fund

[Photo provided by Lotte Chemical Corp.]

South Korea’s Lotte Chemical Corp. is mulling investment in what would be the world’s largest clean hydrogen infrastructure fund led by French energy majors TotalEnergies and Air Liquide as part of its efforts to expedite its hydrogen push Green Promise 2030.

According to industry sources on Monday, Lotte Chemical is reviewing an investment of about 100 million euros ($116.1 million) in a global clean hydrogen fund set up by a consortium of French companies – global gas leader Air Liquide, multinational oil and gas company TotalEnergies, and Vinci Concessions.

The fund, which aims to raise a total 1.5 billion euros, will make strategic investments into hydrogen storage and distribution infrastructure, hydrogen-powered vehicles and hydrogen production projects to accelerate the global transition into clean hydrogen.

Lotte Chemical, which would be one of major anchor investors of the fund, would be also the first Asian company to join the fund. It reportedly received an invitation to participate from Air Liquide when the Korean firm launched its own clean energy vision Green Promise 2030 in July. Other major investors include global leading insurer AXA and green hydrogen solutions provider Plug Power.

Under its clean energy vision, Lotte Chemical has vowed to inject 4.4 trillion won ($3.8 billion) to meet 30 percent of domestic hydrogen demand and achieve carbon neutrality by 2030. Through participation in the fund, Lotte hopes to find new investment opportunities and build a hydrogen value chain to accelerate scaling up of its clean energy business and achievement of its hydrogen vision.

The latest move comes after Lotte Chemical’s announcement of various hydrogen projects. It recently formed partnership with local hydrogen names to lead the advancement of hydrogen technologies in the country.

In May, Lotte signed a partnership deal with Air Liquide Korea to make joint investment in building a high-pressure hydrogen shipment center and hydrogen charging stations using byproduct hydrogen. The company has also introduced Airrane’s carbon capture utilization technology using gas separation membranes at its Yeosu Plant 1.

Shares of Lotte Chemical are trading down 1.45 percent at 238,500 won in early morning trading on Tuesday.

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