Lotte Chemical, Lotte Precision Chemical, and South Korea Development have exchanged a business agreement to jointly promote clean hydrogen and ammonia production and utilization projects.
The three companies will cooperate in business and R&D such as:
- joint development of overseas clean hydrogen and ammonia production,
- exchange of technical information for operation of ammonia infrastructure facilities and,
- utilization of hydrogen and ammonia.
The cooperation of the three companies is expected to greatly contribute to the vitalization of the hydrogen economy. Earlier, the government decided to increase the number of ammonia co-fired coal power plants to 24 by 2030. Accordingly, ammonia demand is expected to reach about 10 million tons in 2030 from about 1.4 million tons now.
The use of hydrogen and ammonia is also expanding in the international community. For example, Japan plans to co-fire 20% of ammonia for all coal power plants. Accordingly, the demand for ammonia fuel is expected to increase to 30 million tons by 2050.
Lotte Chemical’s ESG Management Headquarters Director Kim Yeon-seop said, “The two sides will cooperate comprehensively in hydrogen and ammonia-related front and rear projects in addition to simple ammonia operation cooperation.”
Hee-yong Yoon, head of the chemical business division of Lotte Fine Chemical, said, “Based on the nation’s No. 1 ammonia distribution infrastructure and over 50 years of experience in ammonia management, we will smoothly procure clean ammonia.”