Addition of Hydrogen Business to Corporate Objectives at the General Meeting
Lotte Fine Chemical is taking the lead in the hydrogen carrier, ship fuel, and power plant co-firing markets, aiming to become the "Asia Clean Ammonia Hub."
On the 21st, Lotte Fine Chemical held its 60th regular shareholders' meeting in Jamsil, Seoul, and announced the addition of "hydrogen and hydrogen energy business, ship fuel supply business, and foreign cargo transportation business" to its business objectives.
Lotte Fine Chemical held a shareholders' meeting at its headquarters in Jamsil, Seoul on the 21st and added "hydrogen and hydrogen energy business, ship fuel supply business, and foreign cargo transportation business" to its business objectives. (Provided by Lotte Fine Chemical)
Currently, Lotte Fine Chemical operates a business centered on domestic sales after import, based on the world's third-largest and Asia's largest ammonia infrastructure. The company is preparing to secure new overseas demand and leap forward as a clean ammonia hub.
Lotte Fine Chemical also announced on the same day that it has completed the purchase of ammonia transport vessels and the establishment of re-export facilities. Last month, it completed the construction of ammonia re-export facilities in Ulsan and signed a contract to purchase ammonia transport vessels with a capacity of 25,000 tons worth 50 billion KRW. This enables the re-export of large quantities of ammonia secured from the Middle East, the Americas, and other regions to neighboring countries such as Taiwan and Japan.
Domestic power plants are preparing to start ammonia co-firing power generation, which mixes ammonia with existing fossil fuels for combustion, targeting 2027, following the launch of the Clean Hydrogen Power Supply Obligation (CHPS). Lotte Fine Chemical is building the entire value chain, including overseas procurement, overseas transportation, and storage facilities, to stably supply clean ammonia to major domestic power plants.
The company also plans to conduct demonstration projects for ammonia-to-hydrogen conversion technology and build large-scale ammonia-based hydrogen production facilities in Ulsan. It aims to achieve sales exceeding 1.4 trillion KRW by 2030 from the clean hydrogen ammonia business alone.
With the addition of ship fuel supply to its business objectives, Lotte Fine Chemical will actively pursue the ammonia bunkering business, supplying fuel to eco-friendly ammonia-powered ships that will be commercialized starting next year. Last year, Lotte Fine Chemical signed ammonia bunkering business agreements with HMM and the Netherlands-based OCI Global, respectively.
Kim Yong-seok, CEO of Lotte Fine Chemical, stated, "As we celebrate our 60th anniversary this year, we are fully committed to establishing a sustainable growth foundation to become a 100-year company. Leveraging the addition of business objectives and last month's ship investment as a stepping stone, we will lead the competition to secure demand for power plant co-firing and future ammonia bunkering and clean hydrogen markets."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
