Lotte Fine Chemical Imports 5 Tons of World's First Commercially Produced Clean Ammonia

Saudi Aramco Subsidiary SABIC and State-Owned Company Ma'aden Sign Import Contract

On the 26th (local time), Lotte Fine Chemical signed a clean ammonia supply contract with Ma'aden at Ma'aden's headquarters in Riyadh, Saudi Arabia. Yoon Hee-yong, Head of Chemical Business Division at Lotte Fine Chemical (left), Hassan Al Ali, Ma'aden Business General Manager.

[Asia Economy Reporter Oh Hyung-gil] Lotte Fine Chemical is importing clean ammonia, which was commercially produced for the first time in the world.

On the 26th (local time), Lotte Fine Chemical signed an import contract for a total of 50,000 tons of clean ammonia, 25,000 tons each, with SABIC, a subsidiary of Saudi Aramco, and Ma’aden in Riyadh, Saudi Arabia.

Through this contract, the plan is to bring globally certified (German T?V) clean ammonia into Korea within this year for the first time in the world. This quantity is 'blue' ammonia, which captures carbon dioxide generated during the manufacturing process and emits no carbon during production.

Ammonia is used in various industries such as synthetic fibers, plastics, and semiconductor manufacturing processes, and from 2025, it is expected to be used as a low-carbon energy source mixed with coal at domestic thermal power plants.

In the future, if technology to convert ammonia into hydrogen is commercialized, it can also be used as a clean hydrogen carrier and as a raw material for clean hydrogen. Lotte Fine Chemical is researching related technologies as the lead organization for a national project and is establishing demonstration facilities at its Ulsan plant.

SABIC, which signed the contract, is a chemical subsidiary in which Saudi Aramco holds a 70% stake, and Ma’aden is a fertilizer state-owned company with 50% Saudi government ownership, with the chairman of Aramco serving as co-chairman of Ma’aden.

A Lotte Fine Chemical official said, "This is a symbolic meaning as it is the first time clean ammonia has been exported to Korea since Saudi Energy Minister Prince Abdulaziz bin Salman declared last October that Saudi Arabia would transform into the world's largest hydrogen exporter through large-scale investment in the hydrogen market," adding, "It reflects the will to foster Korea’s hydrogen economy and the diplomatic efforts including government-to-government MOUs, summits, and ministerial meetings."

Kim Yong-seok, CEO of Lotte Fine Chemical, said, "We will actively promote the blue hydrogen and ammonia agreement between the Lotte Chemical Group and Saudi Aramco and contribute to achieving the '2030 Hydrogen Growth Roadmap,'" adding, "We will closely cooperate with related ministries to help Korea lead the global energy transition."

Abdulrahman Shamsaddin, CEO of SABIC, said, "This is an important milestone on the journey to carbon neutrality," and added, "We are proud to contribute to opening the way to supply low-carbon hydrogen for various future uses by supplying the world's first clean ammonia."

On the 26th (local time), officials from Lotte Fine Chemical and SABIC are taking a commemorative photo for the clean ammonia supply contract at SABIC headquarters in Riyadh, Saudi Arabia. Yoon Hee-yong, Head of Chemical Business Division at Lotte Fine Chemical (second from the right), and Saleh Mod Al Humaidi, Head of Ammonia at SABIC (third from the right). Photo by XXX

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