Lotte Chemical-CF Industry, MOU for Clean Ammonia Production in Louisiana, USA

Construction and Operation of New Blue Ammonia Facility

Lotte Chemical announced that it has signed a detailed MOU with CF Industries, the world's largest ammonia producer, to cooperate on clean ammonia production in the Louisiana region of the United States.

On the 25th (local time) at the 'Korea-US Advanced Industry and Clean Energy Partnership' held in the United States, Hwang Jin-gu, Head of Lotte Chemical's Hydrogen Energy Business Division, and Chris Vaughn, CFO of CF Industries, agreed to specify cooperation plans including investment and operation of new blue ammonia facilities in the Louisiana region.

This MOU concretizes the region and scope of work from the 'US Clean Ammonia Production Investment and Domestic Introduction Cooperation MOU' signed by both companies in February, and by announcing their cooperation at the event hosted by the Ministry of Trade, Industry and Energy, they have established a close mutual cooperation relationship.

Lotte Chemical has signed a detailed MOU with CF Industries, the world's largest ammonia producer, to cooperate on clean ammonia production in the Louisiana region of the United States, aiming to accelerate the domestic hydrogen economy and achieve the group's carbon neutrality. (From right) Jin-gu Hwang, Head of Hydrogen Energy Business Group at Lotte Chemical; Chang-yang Lee, Minister of Trade, Industry and Energy; Chris Vaughan, Chief Financial Officer of CF Industries. Photo by Lotte Chemical

Both companies plan to produce clean ammonia by applying carbon capture and storage (CCS) technology and supply it to Korea for use in power generation and bunkering for ammonia-powered ships. To this end, they will fully mobilize Lotte Chemical's global infrastructure and CF Industries' ammonia plant operation and distribution network capabilities.

CEO Hwang said, "We will strive to develop into a leading company in the global clean hydrogen market while ensuring the early establishment of the domestic hydrogen industry."

Meanwhile, Lotte Chemical, a core petrochemical affiliate of Lotte Group, has established a plan to invest a total of 6 trillion KRW by 2030 to produce and sell 1.2 million tons of clean hydrogen and is currently carrying out the project.