Lotte Chemical Group Collaborates with Europe's Largest Ammonia Producer

Establishment of Ammonia-Powered Ship Fuel Bunkering Facility

The Lotte Group's chemical division is entering the clean ammonia business in partnership with Europe's largest ammonia producer.

On the 13th, Lotte Fine Chemical signed a memorandum of understanding (MOU) with the Netherlands-based OCI Global at the JW Marriott Hotel in Banpo to collaborate on clean ammonia supply and bunkering business.

Yoon Hee-yong, Head of the Chemical Division at Lotte Fine Chemical (left), signed a business agreement (MOU) with Zhong Chenfu, Global Head of Ammonia at OCI, on the 13th at the Banpo JW Marriott Hotel.

Through this agreement, Lotte's chemical division will secure supply from OCI Global's blue ammonia plant in Texas, USA, scheduled to produce 1.1 million tons annually by 2025, as well as from the green ammonia plant in Egypt, which is a joint venture (Fertiglobe) between OCI Global and the UAE state-owned company ADNOC.

Additionally, Lotte's chemical division will cooperate in establishing an ammonia fuel bunkering supply chain for ships. They plan to build a global supply network by jointly utilizing OCI Global's ammonia storage infrastructure in Rotterdam, Netherlands, Suez, Egypt, and the central United States.

Lotte's chemical division plans to supply ammonia bunkering to domestic and international shipping companies by establishing the bunkering supply chain, aiming to complete business preparations in line with the full-scale production of ammonia-powered ships in 2025.

Lotte Fine Chemical is also pushing to introduce bio-ammonia domestically for the first time within the year. Bio-ammonia is ammonia produced from bio-methane extracted from waste wood and other sources. Lotte Fine Chemical will supply bio-ammonia imported from OCI Global to domestic plastic raw material companies, and if plastic products made from this raw material receive bio-certification, they will benefit from tax incentives when exported to Europe. To this end, they are currently undergoing procedures to obtain certification from the global bio-certification body (ISCC).

Kim Yong-seok, CEO of Lotte Fine Chemical, stated, "In response to the expanding demand for ammonia bunkering, we have signed an agreement with OCI Global, which possesses ammonia production and global infrastructure competitiveness. We will lead market changes by preparing in advance for the imminent era of clean hydrogen and ammonia."