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Lotte Chemical and CF Industries partner on clean ammonia in US

Anela DoksoBy Anela Dokso01/03/20232 Mins Read
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Lotte Chemical has partnered with CF Industries Holdings, the largest ammonia producer in the world, to work together in the clean ammonia industry in the United States. By doing so, Lotte Chemical has secured a steady supply to provide a springboard for reviving the hydrogen economy.

Through this agreement, the two firms committed to work together to invest in clean ammonia production in the United States, especially Louisiana, and to confirm the size of the business through feasibility studies and demand analyses.

Building regional production facilities and introducing clean ammonia to Korea through the use of Lotte Chemical’s global infrastructure and CF Industries’ ammonia plant operation and distribution network capabilities. Clean ammonia is produced using carbon capture technology (CCS) and supplied to Korea.

With the introduction of the Inflation Reduction Act, the two businesses specifically intend to ensure company competitiveness by aggressively exploiting the US government’s eco-friendly and energy assistance measures (IRA).

Through the implementation of the IRA, the United States is actively supporting clean hydrogen and ammonia projects, including tax credits for clean hydrogen generation and incentive support for infrastructure construction. It is a strategy to protect cost competitiveness, such as production price and operational cost, by taking advantage of the better local investment climate and to get ahead of the rise in demand for ammonia and clean hydrogen in Korea.

Lotte Chemical has formed a plan to generate and sell 1.2 million tons of clean hydrogen by investing a total of 6 trillion won by 2030. This plan is part of the company’s promotion of the hydrogen energy business for the growth of carbon reduction and the supply of clean energy globally.

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