Lotte SK Eneroot has launched Ulsan Hydrogen Power 2, a 20MW hydrogen fuel cell power plant in Ulsan, South Korea. Producing 160GWh annually, it will power 40,000 homes with zero-emission energy. The project supports clean energy goals, enhances regional infrastructure, and marks the beginning of multiple planned hydrogen initiatives.
Lotte SK Eneroot, a joint venture formed by SK Gas, Lotte Chemical, and Air Liquide Korea, has commenced full-scale commercial operations of its first hydrogen fuel cell power plant—Ulsan Hydrogen Power 2—marking a major milestone in South Korea’s clean energy and hydrogen economy initiatives.
Announced on June 25, the Ulsan Hydrogen Power 2 facility has a generation capacity of 20 megawatts (MW) and is located within Lotte Chemical’s existing plant in Nam-gu, Ulsan Metropolitan City. The project was selected as the final operator in the first half of 2023 under South Korea’s inaugural hydrogen power bidding framework. Construction began in March 2023, and in May of that year, the company successfully secured 77.2 billion won through project financing (PF). Following a successful trial phase, the plant has now officially entered commercial operation.
The power plant uses by-product hydrogen supplied by affiliates of SK Gas and Lotte Chemical. It is designed to produce approximately 160 gigawatt-hours (GWh) of electricity annually—enough to meet the energy needs of about 40,000 households, based on a four-person family average. The plant will supply clean, reliable electricity to Ulsan, a key industrial city known for high energy consumption.
One of the standout features of Ulsan Hydrogen Power 2 is its use of a hydrogen-exclusive fuel cell system that emits zero carbon emissions. The technology allows for a future transition to clean hydrogen without requiring major changes to existing equipment. Furthermore, the plant incorporates waste heat recovery, improving overall energy efficiency and further contributing to the reduction of greenhouse gas emissions.
Beyond its environmental advantages, the project is expected to generate significant regional benefits, such as expanding distributed power sources, boosting local tax revenues, and creating new employment opportunities, both directly and indirectly.
Lotte SK Eneroot, since its establishment in September 2022, has been making strategic efforts to accelerate the development of South Korea’s domestic hydrogen infrastructure. The successful launch of Ulsan Hydrogen Power 2 represents the first of several planned projects. The company aims to bring a total of four hydrogen fuel cell plants online by November 2026, collectively reaching an operating scale of 80MW.
Commenting on the launch, Yoon Byung-seok, President of SK Gas, highlighted the project as the company’s first tangible achievement toward realizing a hydrogen economy. He affirmed SK Gas’s role as a “Net Zero Solution Provider” in building a sustainable future. Lee Young-joon, CEO of Lotte Chemical, described the milestone as pivotal to their carbon neutrality goals and committed to strengthening capabilities across hydrogen production, distribution, utilization, and technology development.
