South Korea’s Lotte Chemical Company has announced plans to invest KRW4.4trn (US$3.8bn) by 2030 to expand into the hydrogen business.

The company, part of local conglomerate Lotte Group, said it was looking to cut its own carbon emissions as well as to develop a new growth industry for the company.

It is targeting annual revenue of KRW3trn from its hydrogen business by the end of the decade, including 30% of the domestic hydrogen market, as well as 10% of its operating profit.

Lotte Chemical said it aimed to produce around 600,000 tons of clean hydrogen by 2030 using its eco-friendly production technology which it will supply to its logistics and retail affiliates.

The company would initially target the fuel-cell electric vehicle segment, by rolling out a network of hydrogen fueling stations nationwide, but will also look to sell electricity for industry by building hydrogen fuel cell power plants.

Overall, Lotte Chemical said it planned to establish a comprehensive hydrogen value chain spanning production, distribution and consumption to capture a significant share of the country’s zero-emission energy market.