[Click e-Stock] "Unid Expected to Benefit from Expansion Amid Rising Potassium Demand"

On May 16, Hana Securities predicted that demand for potassium-based products as carbon adsorbents would increase as the carbon capture market grows.

Yoon Jaesung, a researcher at Hana Securities, stated, "Carbon capture will become a core technology in the United States' energy strategy," emphasizing that "it is first and foremost a key technology for expanding crude oil and gas production." He added, "The U.S. Energy Information Administration (EIA) projects that U.S. crude oil and gas production will peak in 2027 and 2032, respectively," and explained, "CEOs in the energy industry share similar views."

He noted, "Occidental has achieved results showing that injecting carbon dioxide into oil fields has doubled production," and analyzed, "Carbon capture is a core technology for reducing CO2 emissions as gas-fired power plants expand in the United States." He further stated, "ExxonMobil and Chevron are emphasizing that carbon capture technology is essential as they proceed with the construction of hyperscale gas-fired power plants in 2027-28."

Yoon explained, "The United States will expand its exports from liquefied natural gas (LNG) to ammonia," noting, "This is because blue hydrogen and blue ammonia can be produced by reforming abundant domestic natural gas and then applying carbon capture." He added, "Carbon capture is also necessary to sell LNG to Europe, where emission standards are strict," and reiterated, "Carbon capture is not just for reducing carbon dioxide emissions, but can become a core technology in the U.S. energy strategy."

Yoon pointed out, "On May 13, the Republican leadership in the U.S. House of Representatives proposed a draft tax reform bill through the Ways and Means Committee, which would bring forward the sunset dates for AMPC (45X), PTC (45Y), and ITC (45E)." However, he introduced, "There are no changes to the 45Q tax credit related to carbon capture compared to before." He explained, "While most clean energy tax credits are being reduced, the retention of 45Q suggests the Republican Party's favorable stance toward carbon capture," and added, "The Republican Party's positive attitude toward carbon capture is because it is a key technology for meeting surging power demand, expanding U.S. crude oil and gas production, and supporting energy exports."

He also said, "Nutrien, a potassium chloride producer, expects the potassium chloride market to remain tight as Russia and Belarus control supply, despite growing demand for potassium-based fertilizers in North America, South America, India, and Asia." He analyzed, "Given that the potassium cycle is turning, strong performance is likely to continue in the second half of this year," and estimated, "Unid is expected to achieve an operating profit of 139.8 billion won this year, driven by external growth from the expansion of Ulsan Phase 2 and China's UHC facilities."