LOTTE Fine Chemical secures Korea’s first green ammonia power deal, 1,500 t from 2027

LOTTE Fine Chemical will supply green ammonia for power generation for the first time in South Korea under a contract with Amun Energy, a joint venture of GS E&C and U.S.-based Amogy, the Seoul Economic Daily reported on October 8.

The green ammonia power deal covers 1,500 tonnes over one year starting in 2027. Amun Energy, set up in April, is building a 1 MW ammonia-fueled distributed power demonstration plant in a special distributed-energy district of the Yeongil Bay industrial complex in Pohang. It plans commercial operation in 2028 and stepwise expansion to as much as 40 MW, with LOTTE holding priority negotiation rights for supply as the plant grows.

LOTTE Fine Chemical entered the ammonia business in 1984 and handles about 700,000 tonnes a year, the third-largest volume of any single company worldwide, according to the report. It owns Asia’s largest ammonia storage tank at Ulsan. This year it became the first company to import green ammonia, in March, and began commercial green ammonia bunkering for ships in April.

“This contract is significant in that it marks the start of building a green ammonia supply chain for power generation,” said Hwang Seok-min, head of the company’s ammonia business division.

New energy uses compete with fertilizer for low-carbon ammonia supply, as large export projects such as China Huadian’s 100,000 t/yr Yingkou plant come online.

Source: Seoul Economic Daily