Samsung ENG-Lotte Chemical, Demonstration Project for Ammonia-Based Clean Hydrogen Production

Formed Consortium of 9 Companies and Institutions to Undertake National Project
Developing Hydrogen Extraction Technology and Securing Infrastructure for Carbon Neutrality

At the 'Ammonia-Based Clean Hydrogen Production Technology Plant Demonstration Project Launch Ceremony' held on December 20, representatives of consortium participating organizations are taking a commemorative photo. (Photo by Samsung Engineering)

[Asia Economy Reporter Lee Hye-young] Samsung Engineering, Lotte Fine Chemical, and Lotte Chemical have formed a consortium with government-affiliated research institutes and universities to participate in a national project for ammonia-based clean hydrogen production.

According to Samsung Engineering on the 21st, this consortium was selected as the executing organization for the Ministry of Trade, Industry and Energy's Energy Technology Evaluation Institute's project titled "Demonstration of Ammonia-Based Clean Hydrogen Production Pilot Plant."

The consortium consists of three companies?Samsung Engineering, Lotte Fine Chemical, and Lotte Chemical?four research institutes (Korea Institute of Energy Research, Korea Research Institute of Chemical Technology, Gas Safety Research Institute, Future Standards Institute), and two universities (Chungnam National University and Kookmin University), totaling nine participants.

The consortium plans to build a demonstration plant producing 800 tons of hydrogen annually based on ammonia at Lotte Fine Chemical's Ulsan plant and develop a design for a commercial-scale hydrogen production plant with an annual capacity of 16,000 tons. The national project period is 48 months starting from November 2021. Of the total budget of 26.2 billion KRW, 14.8 billion KRW is funded by the government, and 11.4 billion KRW is contributed by the consortium companies.

Samsung Engineering is responsible for the pilot plant design, procurement, and commissioning, while Lotte Chemical will develop a high-efficiency ammonia decomposition system (reactor). Lotte Fine Chemical will participate in the national project by utilizing its existing ammonia plant operation infrastructure.

Samsung Engineering explained that this national project is significant as it aims to develop ammonia decomposition hydrogen extraction technology and secure related infrastructure for carbon neutrality, marking the first domestic commercialization-oriented development and demonstration of ammonia decomposition technology.

Choi Sung-an, President of Samsung Engineering, said, "Partners with the highest expertise in each field have come together for this meaningful project to revitalize the domestic hydrogen economy. Based on Samsung Engineering's unique technology and know-how gained from numerous large- and medium-scale ammonia projects worldwide, we will successfully carry out this national project and become a leading company in the clean ammonia and clean hydrogen sectors."

Kim Kyo-hyun, Head of Lotte Group's Chemical Division and Vice Chairman & CEO of Lotte Chemical, emphasized, "Clean hydrogen production through clean ammonia thermal decomposition is the most competitive hydrogen supply method in the future. Through the best domestic industry-academia-research cooperation, we will promote the development of domestic technology, supply 30% of domestic clean hydrogen demand through Lotte Chemical, and realize an active hydrogen business roadmap through organic cooperation."

Kim Yong-seok, CEO of Lotte Fine Chemical, stated, "Lotte Fine Chemical handles about 24% of ammonia distribution in Northeast Asia and 70% domestically, with over 50 years of rich experience in ammonia production, storage, distribution, and utilization. Through this demonstration project, we will realize the world's first complete ammonia-hydrogen energy pathway on a single site, covering ammonia import, transfer, storage, thermal decomposition hydrogen extraction, and utilization."

This content was produced with the assistance of AI translation services.