Lotte Chemical - Nambu Power Establish Cooperation System for Hydrogen and Ammonia Business

Lotte Chemical to Invest 6 Trillion Won by 2030 in Clean Hydrogen Distribution Including Joint Development of Overseas Clean Hydrogen and Ammonia Production

[Asia Economy Reporter Oh Hyung-gil] Lotte Group's chemical affiliates are jointly promoting clean hydrogen and ammonia projects with Korea Southern Power.

Lotte Chemical, Lotte Fine Chemical, and Korea Southern Power announced on the 11th that they signed a business agreement yesterday at Lotte World Tower in Jamsil, Seoul, to establish a cooperative system for hydrogen and ammonia projects.

They plan to jointly develop overseas clean hydrogen and ammonia production, exchange technical information on ammonia infrastructure facility operations, and cooperate on hydrogen and ammonia utilization projects and joint research and development.

Lotte Chemical aims to invest 6 trillion KRW by 2030 to produce, distribute, and utilize 1.2 million tons of clean hydrogen, targeting sales of 5 trillion KRW. Specifically, of the hydrogen production volume, 600,000 tons will be supplied for power generation, 450,000 tons for fuel cells and hydrogen gas turbines, and 150,000 tons for transportation.

Lotte Fine Chemical, the leading ammonia distributor in Korea, will take the lead in introducing clean ammonia. In November last year, a consortium led by Lotte Fine Chemical won a national project to develop ammonia-based clean hydrogen production technology. In August last year, they signed Korea's first green ammonia supply agreement for 300,000 tons with Trammo, the world's number one ammonia distributor based in the U.S.

The government also plans to increase the number of coal power plants applying ammonia co-firing (mixed combustion of fossil fuels and ammonia) to 24 units by 2030, and ammonia demand is expected to grow from about 1.4 million tons currently to approximately 10 million tons by 2030.

Kim Yeon-seop, Head of ESG (Environment, Social, Governance) Management at Lotte Chemical, said, "We expect to promote carbon reduction by comprehensively cooperating not only in simple ammonia operation but also across upstream and downstream businesses related to hydrogen and ammonia."

Yoon Hee-yong, Head of Chemical Business Division at Lotte Fine Chemical, stated, "Based on the nation's number one ammonia distribution infrastructure and over 50 years of ammonia management experience, we will contribute to securing national industrial competitiveness and energy security through the smooth procurement of clean ammonia."