Lotte Chemical to Promote Production and Import of Clean Ammonia in the US

MOU with the World's Largest Producer 'CF Industries'
Investment in Clean Ammonia Production in Louisiana

Lotte Chemical is launching a clean ammonia business in the United States in partnership with the world's largest ammonia producer.

On the 27th, Lotte Chemical signed a Memorandum of Understanding (MOU) for cooperation in the clean ammonia business in the U.S. with CF Industries at Lotte World Tower. Hwang Jin-gu, head of Lotte Chemical's Hydrogen Energy Business Unit (also CEO of the Basic Materials Business), and Tony Will, CEO of CF Industries, attended the ceremony.

Hwang Jin-gu, CEO of Lotte Chemical (right), is signing a business cooperation agreement (MOU) for the clean ammonia project with Tony Will, CEO of Will CF Industries, at Lotte Jamsil Tower on the 27th.

The two companies agreed to determine the scale of the project through feasibility studies and demand analysis and to cooperate on investment in clean ammonia production within the U.S., including Louisiana. Leveraging Lotte Chemical's global infrastructure and CF Industries' ammonia plant operation and distribution network capabilities, they plan to build production facilities locally and promote the import of clean ammonia to Korea.

They plan to produce clean ammonia by applying carbon capture and storage (CCS) technology and explore its utilization in Korea for power generation and bunkering supply to ships. In particular, they intend to actively utilize the U.S. government's eco-friendly and energy support policies following the implementation of the Inflation Reduction Act (IRA) to secure business competitiveness.

Lotte Chemical is promoting a hydrogen energy business for global clean energy dissemination and carbon reduction growth, planning to invest a total of 6 trillion KRW by 2030 to produce and sell 1.2 million tons of clean hydrogen.

They have signed joint research agreements for clean ammonia (blue and green) production and export projects in the Corpus Christi port area of Texas, U.S., with German energy company RWE and Japanese trading company Mitsubishi Corporation, and have signed an MOU with U.S. Tollgrade for the import of clean ammonia to Korea.

In Sarawak, Malaysia, they are conducting a global clean hydrogen and ammonia production project. To expand the hydrogen and ammonia distribution network, they are broadening infrastructure networks with Japanese trading companies such as Itochu, Sumitomo, and Mitsubishi, and are strengthening cooperation with Korea Electric Power Corporation and power generation public enterprises to expand ammonia co-firing power generation infrastructure.

Hwang Jin-gu said, "For the early activation of the domestic hydrogen economy, securing a stable supply of clean hydrogen and ammonia centered on overseas regions rich in resources and with low geopolitical risks is key," adding, "Through strategic collaboration with CF Industries, which has over 60 years of long history and business experience, we will secure production bases in the U.S. and lead the global distribution channel dominance."

Tony Will, CEO, said, "We will strive to meet the demand in Korea's emerging clean ammonia sector by utilizing the world-class expertise held by both companies," and added, "Along with supplying clean ammonia that meets the standards of Korea and Lotte, we will do our best to accelerate the global clean energy transition."