Lotte Fine Chemical "World's First Commercial Production of 'Clean Ammonia' Arrives in Ulsan"

Entry Ceremony at Ulsan Port on the 13th... Remaining Maden Cargo to Arrive Within the Year
Kim Gyo-hyun "Will Secure Leadership in the Entire Hydrogen Industry Process"

On October 26th, at SABIC headquarters in Riyadh, Saudi Arabia, representatives from Lotte Fine Chemical and SABIC are taking a commemorative photo for the clean ammonia supply contract. Photo by Lotte Fine Chemical

[Asia Economy Reporter Choi Seoyoon] Lotte Fine Chemical announced on the 13th that the world's first 'clean (blue) ammonia' arrival ceremony was held at Ulsan Port, adjacent to its ammonia terminal.

The clean ammonia shipment brought in that day totaled 25,000 tons, commercially produced for the first time in the world by Saudi Arabia's SABIC and Aramco. It also received the world's first global certification (Germany's T?V). The remaining 25,000 tons from Ma’aden will arrive within the year. Earlier, in October, Lotte Fine Chemical signed import contracts for these quantities with SABIC AN and Ma’aden in Riyadh, Saudi Arabia.

The arrival ceremony was attended by Kim Kyohyun, Vice Chairman of Lotte Group's Chemical Division; Kim Yongseok, CEO of Lotte Fine Chemical; Yazid, Vice President of SABIC AN; Mutaib, CEO of Aramco Korea; Park Iljun, 2nd Vice Minister of the Ministry of Trade, Industry and Energy; Kim Dugyeom, Mayor of Ulsan; and Kim Jaegyun, President of Ulsan Port Authority, among other officials.

The industry evaluates this case as a symbolic turning point for the global clean energy transition. Although there have been memorandums of understanding (MOUs) for clean hydrogen and ammonia supply, this is the first case where commercially produced clean ammonia has actually been supplied.

Lotte Fine Chemical is the number one ammonia distribution company in East Asia. It is currently the largest buyer of Saudi ammonia in Saudi Arabia, importing 500,000 tons annually, worth approximately 50 billion KRW. Based on decades of trust, it has expanded cooperation by signing a blue hydrogen and ammonia business agreement with Aramco in January and a fine chemical business agreement with the Saudi Ministry of Investment last month.

Saudi Arabia has announced its goal to become the world's largest exporter of clean hydrogen and ammonia by 2030 and plans massive investments. The Korean government forecasts that ammonia demand for power generation to reduce carbon emissions from coal-fired power plants will reach 5 million tons by 2030, which is about four times the current annual demand of approximately 1.3 million tons for basic chemicals and fertilizers.

The two countries are developing their 60-year cooperation in fossil energy supply into a clean energy supply cooperation relationship in the carbon-neutral era. Saudi Arabia's decision to export the first clean ammonia shipment to Korea is evaluated to be influenced by Korea's commitment to fostering a hydrogen economy and diplomatic efforts such as government MOUs, summits, and ministerial meetings.

The Ministry of Trade, Industry and Energy has announced a policy direction to create large-scale demand for clean hydrogen and ammonia and to build corresponding infrastructure and systems to expand the hydrogen ecosystem. It also plans to strengthen international cooperation to establish a global hydrogen supply chain.

Vice Minister Park Iljun said, “Hydrogen is not only a means to respond to climate change but also increasingly important as a means to strengthen energy security. Today's arrival ceremony shows the world that the clean hydrogen economy is not a distant future but a near reality. We will strive to create an ecosystem centered on clean hydrogen according to the new government hydrogen economy policy direction recently announced.”

Vice Chairman Kim Kyohyun said, “The introduction of the world's first commercially produced clean ammonia is an important step not only for Lotte Fine Chemical but also for Lotte Group's Chemical Division to realize carbon neutrality. Lotte Group's Chemical Division will proactively build infrastructure from production to transportation and distribution through its strengths in global networks and project experience to secure leadership in the entire hydrogen industry process.”

CEO Kim Yongseok stated, “This world's first clean ammonia arrival is significant as the first case where actual large-scale clean energy supply has been realized, not just announced agreements or plans. Based on Lotte Fine Chemical's number one ammonia distribution infrastructure in East Asia, we will contribute to making Korea the clean energy hub of Asia.”

Mayor Kim Dugyeom of Ulsan said, “Ulsan is the largest hydrogen production site in Korea and a leading hydrogen energy city equipped with the foundation for hydrogen industry including transportation, storage, and utilization. We expect this blue ammonia arrival to open a new chapter for Ulsan's hydrogen industry.”

President Kim Jaegyun said, “Building on today's monumental clean ammonia arrival ceremony, we will successfully promote the ‘Green Hydrogen and Ammonia Logistics Hub Project,’ which aims to add about 2.2 million tons of clean ammonia storage capacity by 2030, and do our best to help Ulsan Port leap forward as an eco-friendly energy logistics hub port.”

Meanwhile, Lotte Group's Chemical Division plans to produce and distribute 1.2 million tons of clean hydrogen by 2030 and is actively promoting overseas clean hydrogen and ammonia import and production projects. To commercialize ammonia hydrogen reforming technology, a core technology for revitalizing the hydrogen economy, it is conducting joint demonstration of ammonia photolysis technology with the U.S. company CG and plans to build a pilot facility in Ulsan for ammonia thermal decomposition technology demonstration, selected as a national project.

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