Lotte Fine Chemical Collaborates with Japan's Largest Power Company on Ammonia

As Part of the Establishment of a Working Group for Developing a Clean Hydrogen Ammonia Supply Chain

Lotte Fine Chemical announced on the 23rd that it has signed a Clean Ammonia Value Chain Agreement (JCA) with Japan's largest power company, JERA. The signing ceremony, held the previous day at Lotte Fine Chemical in Samseong-dong, Seoul, was attended by Yoon Hee-yong, Head of the Chemical Business Division at Lotte Fine Chemical, Masato Otaki, Head of the Low Carbon Fuel Planning Department at JERA, and other officials.

Yoon Hee-yong, Head of the Chemical Business Division at Lotte Fine Chemical (left), is taking a commemorative photo with Masato Otaki, Head of Low Carbon Fuel Planning at JERA, at the clean ammonia value chain agreement ceremony held at the Lotte Fine Chemical office in Samseong-dong on the 22nd. (Photo by Lotte Fine Chemical)

The two companies will cooperate to optimize the overseas clean ammonia supply chain, establish low-carbon fuel standards in both countries, and expand the value chain.

To optimize the overseas clean ammonia supply chain, they will collaborate across the entire value chain, including procurement from clean ammonia suppliers, reducing transportation costs by using ultra-large vessels for maritime transport, sharing storage and distribution logistics infrastructure, and swapping volumes within the region.

Additionally, they will cooperate in establishing low-carbon fuel standards and expanding the value chain with the governments of both countries. In June, in Washington, USA, Minister An Deok-geun of the Ministry of Trade, Industry and Energy met with Japan's Minister of Economy, Trade and Industry, Saito Gen, to expand cooperation in building an international clean hydrogen ammonia supply chain by establishing a 'Clean Hydrogen Ammonia Supply Chain Development Working Group' and promoting the launch of a Korea-Japan hydrogen ammonia supply chain and utilization cooperation platform.

Lotte Fine Chemical is collaborating with various global companies by leveraging Asia's number one ammonia distribution infrastructure and global network. It is proactively investing in infrastructure such as vessels and re-export facilities.

JERA is Japan's largest power company, established in 2015 as a joint venture between Tokyo Electric Power Company (TEPCO) and Chubu Electric Power.

Kim Yong-seok, CEO of Lotte Fine Chemical, said, "We consider it very meaningful to sign this agreement with JERA, which is playing a leading role in building a clean energy supply chain in Japan," adding, "Through this agreement, we will contribute to enhancing the industrial competitiveness of both countries in the decarbonization era."

Tsugaru Ryosuke, Head of Low Carbon Fuel at JERA, said, "We are pleased to establish a cooperation framework with Lotte Fine Chemical, a leading company in Korea's clean energy sector," and added, "We hope to accelerate Asia's energy transition through decarbonization efforts not only in the power sector but also in other sectors."