[Click eStock] "KIB Plug Energy, Expected Project Benefits from Ammonia Investment Expansion"

Daishin Securities analyzed on the 20th that KIB Plug Energy is expected to benefit from the expansion of global ammonia investments.

Jangwook Park, a researcher at Daishin Securities, stated, "According to global ammonia producer CF Industries, a shortage of ammonia supply is expected over the next four years," adding, "This is due to reduced production in Europe caused by the Russia-Ukraine war and a decrease in exports from Russia."

KIB Plug Energy, established in 1981, is a chemical equipment specialist company that has been manufacturing heat exchangers, pressure vessels, and storage tanks. It has been securing large-scale orders mainly in the Middle East, and recently, the volume of orders related to ammonia, a hydrogen transport medium, has been increasing.

Researcher Park explained, "Large-scale investments in blue ammonia are underway in the U.S. Gulf of Mexico," and added, "The U.S. has terrain suitable for carbon capture and storage technology (CCS), making it an ideal region for blue ammonia projects."

He continued, "KIB Plug Energy is expected to benefit from blue ammonia in addition to LNG (liquefied natural gas) exports to the Americas and oil and gas exports to the Middle East," and said, "Steady investments related to blue ammonia are anticipated, so benefits in this sector are expected."

According to a KIB Plug Energy official, the target for next year is approximately 130 billion KRW in new orders and about 150 billion KRW in sales. The expected order amount related to ammonia next year is estimated to be between 20 billion and 30 billion KRW.