LOTTE Chemical Unit Participates in Construction of Clean Ammonia Supply Chain in the West Sea Region

█ Enter MOU for mutual cooperation to build clean ammonia supply chain in the West Sea region

█ Plans to build green and blue ammonia production bases abroad and expand acquisition, storage, and distribution infrastructure

█ Hydrogen Energy Business Director Hwang Jin-koo, “LOTTE Chemical Unit is expanding its global network in Southeast Asia,

    Japan and the US to construct a hydrogen ecosystem of producing, distributing, utilizing and developing technologies of clean hydrogen

    by maximizing the core capacities possessed by the company’s chemical unit”... “Through this project, we will strengthen the domestic network

    to accelerate distribution and utilization of clean hydrogen and ammonia and contribute to activating the domestic hydrogen economy”

The LOTTE Group Chemical Unit (LOTTE Chemical, LOTTE Fine Chemical) entered MOUs with the Korea National Oil Corporation, Korea South-East Power Co., Korea Western Power Co., POSCO, SK Gas, and Samsung Engineering to pursue the clean ammonia supply chain construction project in the West Sea region.

Seven companies including the LOTTE Group Chemical Unit entered the ‘MOU for mutual cooperation to build clean ammonia supply chain in the West Sea region’ at LOTTE Hotel Seoul in Sogong-dong, Seoul on the 9th. This MOU signing ceremony was held as a pre-event of the 5th Hydrogen Economy Committee hosted by the Prime Minister on the 9th. The event was also joined by Prime Minister Han Deok-soo and Minister of Trade, Industry and Energy Lee Chang-yang.

Through this MOU, clean ammonia, which is a raw material for no-carbon generation in Korea, will be produced in the Middle East, Malaysia, etc. and be supplied to nearby ammonia mixed fuel generators to produce hydrogen through cracking, and promote the actual project for supplying it to nearby hydrogen mixed fuel generators.

The LOTTE Group Chemical Unit will participate in the construction of overseas green and blue ammonia production bases together with the Korea National Gas Corporation, POSCO, SK Gas, and Samsung Engineering. And together with the Korean National Gas Corporation and SK Gas, it will participate in building the clean ammonia acquisition, storage and distribution network and cracking hydrogen production infrastructure in the West Sea region of Korea. Korea South-East Power Co. and Korea Western Power Co. will use this infrastructure to receive clean hydrogen and ammonia and use it in mixed fuel tests.

Hydrogen Energy Business Director Hwang Jin-koo stated, “LOTTE Chemical Unit is expanding its global network in Southeast Asia, Japan and the US to construct a hydrogen ecosystem of producing, distributing, utilizing and developing technologies of clean hydrogen by maximizing the core capacities possessed by the company’s chemical unit,” and added, “Through this project, we will strengthen the domestic network to accelerate distribution and utilization of clean hydrogen and ammonia and contribute to activating the domestic hydrogen economy”

The LOTTE Group Chemical Unit established plans to invest a total of 6 trillion KRW to produce 1.2 million tons of clean hydrogen by 2030, and distribute and use this to achieve annual sales of 5 trillion KRW. It plans to promote implementation of clean ammonia from abroad in preparation for increased domestic demand, and contribute in the building of a green circulating ecosystem focusing on low carbon growth and hydrogen based on core capacities such as large-scale customers, massive supply chain, and eco-friendly technologies.

The global clean hydrogen/ammonia production project is underway in Sarawak, Malaysia, an infrastructure networks are being expanded with Japanese corporations such as Itochu, Sumitomo, and Mitsubishi for timely distribution of hydrogen and ammonia. In addition, we made cooperative relationships with Tallgrass of the US to bring in clean ammonia into Korea, and we are also increasing the ammonia mixed fuel generation infrastructure with Korea South-East Power Co. and Korea Western Power Co.