Lotte Chemical Corp. will invest 10 trillion won ($8 billion) on hydrogen and battery materials through 2030 to achieve annual revenue of 50 trillion won and carbon neutrality.
The Korean chemical producer on Thursday unveiled its new corporate vision outlining key corporate strategies with focus on growth through hydrogen energy and battery materials businesses.
The company has set a target to bump up its sales from petrochemical production to 20 trillion won from 11 trillion won of last year, as well as expand value-added specialty sales to 18 trillion won from 7 trillion won. In green energy business, it will invest a total of 11 trillion won – 5 trillion won from hydrogen energy, 5 trillion won from battery materials, and 2 trillion won from recycled and bio plastics – so that green sector can generate sale of 12 trillion won.
On Thursday, Lotte Chemical shares rose 1.03 percent to 197,000 won by 2:57 p.m. in Seoul.
Earlier in March, Lotte Chemical launched “Hydrogen Energy Business Unit” and “Battery Material Business Unit” to lead growth in green energy market.
The company will spend 6 trillion won by 2030 to produce 1.2 million tons of hydrogen and generate 5 trillion won in revenue a year. It plans to use 600,000 tons of produced hydrogen on power generation, 450,000 tons on turbines for fuel cell and hydrogen gas turbines, and 150,000 tons on transportation.
“Lotte Chemical will leverage its vast business network, investment capacity and experience in global project operations to establish a hydrogen energy ecosystem, spanning production to distribution and sales, and lead the market,” said Lotte Chemicals Basic Materials Division President Hwang Jin-koo, leading the newly established the Hydrogen Energy Business Unit.
In battery materials business, the company plans to invest 4 trillion by 2030 to achieve annual revenue of 5 trillion won – 4 trillion won from lithium-ion battery materials and 1 trillion won from next-generation battery materials. For this, the company is preparing to set up an office in the U.S and expand R&D efforts in next-generation battery materials.
“The company will actively seek faster and stronger growth through various ways, from setting up a joint venture with other technology leaders and collaborating with Lotte family units,” said Lee Young-joon, head of the Battery Unit.
In recycled and bio plastic materials business, Lotte Chemical will spend 1 trillion won to ramp up production capacity to over 1 million tons by 2030. From this, the company aims to reap 2 trillion won in revenue a year.
The company’s new business vision for sustainable growth also includes commitment to carbon neutrality.
The chemical producer vowed to cut its carbon emissions by 25 percent until 2030, versus its output level in 2019, and achieve net zero emissions by 2050. To meet the goal, it will actively use hydrogen and renewable energy sources, improve energy efficiency, and expand the adoption of carbon capture and storage technology.
In addition, the company is preparing to join the RE100, a global initiative participated by businesses around the world for the commitment to run on 100 percent renewable electricity by 2050.
By Cho Jeehyun
During a European Industry Summit held on the site of BASF in Antwerp, leaders from basic industry sectors, representing 7.8 million workers in Europe, joined forces with European trade unions and European leaders to address pressing concerns regarding Europe’s industrial landscape.
The use of blue or low-carbon hydrogen, made from natural gas with carbon capture and storage (CCS), could increase near-term global warming by 50% compared with burning fossil fuels directly for energy if emissions are not properly managed, according to a new study by NGO the US Environmental Defense Fund (EDF) and the University of Arizona.
In a move to improve the supply of renewable hydrogen and thus reduce dependence on natural gas and contribute to achieving the objectives of the European Green Deal and the REPowerEU plan, the EU Commission has approved a third Important project of common European interest (IPCEI) to support hydrogen infrastructure.