LOTTE Group Chemical Unit and Korea Southern Power Jointly

Develops Production and Utilization of Clean Hydrogen/Ammonia

█ LOTTE Chemical-LOTTE Fine Chemical-Korea Southern Power signs joint development MOU

    for clean hydrogen/ammonia production and utilization business on the 10th

█ Joint development of overseas clean hydrogen/ammonia production, exchange of ammonia infrastructure equipment

    operation technology information, and cooperation on hydrogen/ammonia utilization business and relevant joint R&D

█ LOTTE Chemical to invest a total of 6 trillion KRW by 2030 to produce and distribute 1.2 million tons of

    clean hydrogen based on core capacities such as large-scale consumers, mass supply chain,

    eco-friendly technologies... LOTTE Fine Chemical takes the initiative to implement clean ammonia

    domestically based on the handling and distribution knowhow of Korea’s top ammonia distribution company

LOTTE Group chemical unit and Korea Southern Power will jointly develop the clean hydrogen/ammonia production and utilization business and cooperate in the execution of the government’s hydrogen economy activation policy.

LOTTE Chemical, LOTTE Fine Chemical, and Korea Southern Power signed an MOU on the 10th at Jamsil LOTTE World Tower with the attendance of the LOTTE Chemical ESG Management Division Director Kim Yeon-seop, LOTTE Fine Chemical Chemical Business Part Head Yoon Hee-yong, and KOSPO Business Division Director Shim Jae-won.

Through this MOU, the three companies will △jointly develop overseas clean hydrogen/ammonia production, △exchange in ammonia infrastructure equipment operation technology information, △cooperate in businesses utilizing hydrogen and ammonia, and △cooperate in joint R&D related to hydrogen and ammonia.

The government plans to increase coal power generators applying ammonia mixed fuels (reduce carbon emissions through mixed combustion of ammonia in existing fossil fuels at thermal power plants) by 2030, and the expected demand for ammonia is expected to grow significantly from the current amount of approximately 1.4 million tons to about 10 million tons by 2030.

Use of hydrogen/ammonia is also expected to grow in the international community. Japan plans to mix 20% ammonia in its entire coal generation, and therefore, the demand for ammonia fuel is expected to increase to 30 million tons by 2050. In addition, the importance of smooth supply of clean hydrogen/ammonia is expected to grow even further in parallel with motions by the US and the EU to enact carbon taxes.

LOTTE Chemical ESG Management Division Director Kim Yeon-seop stated, “Through this MOU, the LOTTE Group Chemical Unit and KOSPO are expected to be able to pursue carbon reduction based on comprehensive cooperation for front and rear businesses related to hydrogen/ammonia, not to mention cooperation in ammonia operations.” 

LOTTE Fine Chemical Chemical Business Part Head Yoon Hee-yong commented, “We will contribute to secure national industrial competitiveness and energy security through the smooth procurement of clean ammonia based on Korea’s top ammonia distribution infrastructure and over 50 years of ammonia management experience.”

KOSPO Business Division Director Shim Jae-won said, “We plan to construct a national hydrogen/ammonia industrial ecosystem through the organic cooperation of the three companies using this MOU,” and added, “We will take the lead in procuring global industrial competitiveness and activation of the economy related to hydrogen energy.”

LOTTE Chemical plans to invest 6 trillion KRW by 2030 based on the core capacities of large-scale consumers, massive supply chains, and eco-friendly technologies, etc. to produce 1.2 million tons of clean hydrogen, which will be distributed and utilized to achieve 5 trillion KRW in revenue. In particular, from the 1.2 million tons of its hydrogen production, it plans to supply 600,000 tons for generators, 450,000 tons for fuel cells and hydrogen gas turbines, and 150,000 tons for transportation.

LOTTE Fine Chemical intends to take the initiative for domestic implementation of clean ammonia based on the handling and distribution knowhow of Korea’s top ammonia distributor. Last year, the consortium headed by LOTTE Fine Chemical was selected for the national policy project on the development of clean hydrogen production technologies based on ammonia in November of last year. Furthermore, in August of last year, it entered an MOU for the supply of 300,000 tons of green ammonia with the Trammo, the world’s largest ammonia distributor based in the US, for the first time in Korea, thus putting the spurs to procure clean ammonia.