Lotte Chemical and Korea National Oil Corporation Jointly Invest in Clean Hydrogen and Ammonia Production and Operation

Vice Chairman Kim Gyo-hyun "Contributing to the Creation of Domestic Hydrogen Ecosystem and Carbon Reduction"

Kim Gyo-hyun, Vice Chairman of Lotte Chemical (right), and Kim Dong-seop, President of Korea National Oil Corporation (left), are posing for a commemorative photo at a business meeting held on the 20th at Jamsil Lotte World Tower. Photo by Lotte Chemical

[Asia Economy Reporter Choi Seoyoon] Lotte Chemical and Korea National Oil Corporation (KNOC) will collaborate to revitalize the hydrogen economy and reduce carbon emissions through joint development and investment in clean hydrogen and ammonia production and operation projects.

On the 21st, Lotte Chemical and KNOC announced that they signed a Memorandum of Understanding (MOU) at Lotte World Tower in Songpa-gu, Seoul, attended by Kim Kyohyun, Vice Chairman of Lotte Chemical, and Kim Dongseop, President of KNOC.

Through this agreement, both companies will leverage their respective technologies and expertise to cooperate on ▲joint development and investment in overseas clean hydrogen and ammonia production ▲joint development and operation of hydrogen and ammonia import terminals ▲development of ammonia reforming hydrogen projects.

Based on core competencies such as large-scale consumption, extensive supply chains, and eco-friendly technologies, Lotte Chemical aims to invest 6 trillion KRW by 2030 to produce 1.2 million tons of clean hydrogen, distribute and utilize it, and achieve sales of 5 trillion KRW.

To this end, Lotte Chemical is establishing cooperative relationships with various domestic and international companies related to hydrogen and ammonia and advancing its business.

Domestically, it is promoting clean hydrogen and ammonia production and utilization projects and cooperating with Korea Electric Power Corporation, Korea Southern Power, and Korea Midland Power to implement the government’s hydrogen economy activation policies. To secure supply stability and expand the market for hydrogen and ammonia in the East Asian region, it has also established a cooperative relationship with Itochu Corporation, a leading Japanese general trading company.

Furthermore, to secure future leadership in the hydrogen industry and preempt technology, Lotte Chemical is conducting the world’s first joint demonstration of ammonia photolysis technology with Syzygy in the United States and the Sumitomo Corporation Group in Japan. Through this, Lotte Chemical is implementing plans to contribute to the activation of domestic hydrogen and ammonia by conducting demonstrations of photolysis technology following the world’s largest-scale ammonia thermal decomposition technology demonstration.

KNOC has played its role as an energy public enterprise for national energy security since the second oil shock and is now rapidly transforming into a comprehensive energy company responsible for carbon neutrality in the transition to a new clean hydrogen era. In particular, based on long-accumulated experience and technology in overseas resource development, crude oil distribution, and storage, KNOC is striving to build infrastructure for the introduction, storage, and distribution of clean hydrogen and ammonia.

Vice Chairman Kim Kyohyun said, “Through this agreement, Lotte Chemical and KNOC will comprehensively cooperate in the clean hydrogen and ammonia business by combining their strengths,” adding, “Lotte Chemical will utilize hydrogen and ammonia-related technologies and know-how secured through various project experiences and continuously cooperate with domestic and international companies to contribute to the creation of a domestic hydrogen ecosystem and carbon reduction.”

President Kim Dongseop stated, “In line with the global trend of carbon neutrality, major countries and companies are expanding investments in the hydrogen and ammonia industries, which are key energy sources that can replace existing fossil fuels,” and added, “Starting from this agreement, both companies will do their best to contribute to national carbon neutrality and lead the future eco-friendly energy new industry market.”

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