Hwang Jin-koo (R), head of hydrogen energy business at Lotte Chemical Corp., shakes hands with Tony Will, president and chief executive officer of CF Industries Holdings Inc., after signing a memorandum of understanding on clean ammonia cooperation on Feb. 27, 2023, in this photo provided by Lotte Chemical.
SEOUL, Feb. 28 (Korea Bizwire) — Lotte Chemical Corp., a South Korean chemical company, said Tuesday it has signed a preliminary deal with a U.S. ammonia producer to explore opportunities for clean ammonia production and its offtake into Korea.
The memorandum of understanding with CF Industries Holdings Inc. calls for the two to assess the development of and investment in a clean ammonia production facility in the U.S., including the state of Louisiana where CF Industries runs a complex, Lotte Chemical said in a release.
They will conduct a joint study on expected demand for clean ammonia in South Korea to push for a long-term offtake agreement to bring in the clean energy source into the country for power generation, bunkering and other uses.
Lotte Chemical, the chemical unit under South Korea’s retail giant Lotte Group, is bolstering its clean energy business as part of a green transition drive.
It plans to invest 6 trillion won (US$4.56 billion) by 2030 to produce and sell some 1.2 million tons of clean hydrogen. Ammonia is a key feedstock for hydrogen.
(Yonhap)
