Agreement signed Wednesday; Lotte's Shin Yu-yul attends ceremony

Deal combines ammonia infrastructure with hydrogen production, power generation technology

Cooperation to cover green hydrogen charging stations, distributed ammonia power generation and green ammonia bunkering

Lotte Fine Chemical said Thursday that it signed a memorandum of understanding with Amogy on Wednesday at its Seoul business site to cooperate on clean energy projects. Pictured from left are Amogy Director Kang Seok-won, Amogy CEO Woo Sung-hoon, Lotte Future Growth Office Head Shin Yu-yul, Lotte Fine Chemical CEO Jeong Seung-won and Hwang Seok-min, head of Lotte Fine Chemical's Ammonia Business Division.
Lotte Fine Chemical said Thursday that it signed a memorandum of understanding with Amogy on Wednesday at its Seoul business site to cooperate on clean energy projects. Pictured from left are Amogy Director Kang Seok-won, Amogy CEO Woo Sung-hoon, Lotte Future Growth Office Head Shin Yu-yul, Lotte Fine Chemical CEO Jeong Seung-won and Hwang Seok-min, head of Lotte Fine Chemical's Ammonia Business Division.

Lotte Fine Chemical said Thursday that it has signed a memorandum of understanding with Amogy, a US-based hydrogen production and power generation solutions company, to cooperate on ammonia-based clean energy projects.

The agreement aims to combine Lotte Fine Chemical's ammonia distribution infrastructure — the largest of its kind in Asia — with Amogy's ammonia decomposition and power generation technology. This will lay the groundwork for South Korea's clean hydrogen and power generation market. Shin Yu-yul, head of Lotte's Future Growth Office, attended the signing ceremony held at Lotte Fine Chemical's Seoul business site on Wednesday. His attendance lent support to the expansion of the company's hydrogen and ammonia business.

Ammonia liquefies at a higher temperature and has greater storage density than hydrogen, giving it better energy efficiency for storage. It can also be burned directly, drawing attention as an eco-friendly alternative to fossil fuels for use as ship fuel and as a carbon-free source for power generation.

Lotte Fine Chemical became the world's first company to import green ammonia in March and, in April, achieved the world's first commercialization of green ammonia bunkering for ship fuel. Green ammonia refers to ammonia produced using renewable energy without carbon dioxide emissions.

Amogy holds technology that converts ammonia into high-purity hydrogen, along with a modular power generation system built on that technology. The company has demonstrated the technology in drones, trucks and ships, and is now working to commercialize it for commercial power generation systems, including data centers.

The two companies will explore cooperation in three areas: building green hydrogen charging stations, distributed green ammonia power generation and green ammonia bunkering.

First, they are reviewing a plan in which Lotte Fine Chemical would supply green ammonia through its overseas procurement network and domestic infrastructure. Amogy's modular ammonia cracking system would then produce and supply hydrogen on-site at charging stations.

The companies also plan to pursue power generation solutions for commercial facilities and local communities. Lotte Fine Chemical would supply and store ammonia, while Amogy provides ammonia power generation modules based on fuel cells or internal combustion engines.

In addition, the two sides will examine cooperation to supply ammonia fuel to vessels equipped with the ammonia-based power generation modules that Amogy is developing. The fuel would be supplied using Lotte Fine Chemical's ammonia terminal and ship bunkering capabilities at Ulsan Port.

"Through this cooperation, we expect to expand our existing infrastructure into diverse applications such as hydrogen production and power generation, and to contribute to invigorating South Korea's clean ammonia and hydrogen economy," said Hwang Seok-min, head of Lotte Fine Chemical's Ammonia Business Division.

Amogy CEO Woo Sung-hoon said, "We will work to combine Lotte Fine Chemical's global supply chain and infrastructure with Amogy's ammonia-based hydrogen production and power generation technology to deliver results in hydrogen charging, distributed power generation and shipping."

Meanwhile, Lotte Fine Chemical is pursuing cooperation and demonstration projects with global companies and institutions across various regions to build a global clean ammonia supply chain. Through these efforts, the company aims to build an integrated platform for clean ammonia supply chains and technology, with the goal of becoming Asia's top clean ammonia hub.


keg@heraldcorp.com