HMM Signs MOU for Ammonia Maritime Transport Toward Carbon Neutrality

by Ryu Hyunseok

Published 24 Apr.2023 09:17(KST)

HMM announced on the 24th that it has signed a Memorandum of Understanding (MOU) with Lotte Fine Chemical for "Ammonia Maritime Transport and Ammonia·Methanol Bunkering for Carbon Neutrality."

The signing ceremony held at Lotte Fine Chemical in Samseong-dong, Seoul, was attended by more than 30 people, including Kim Kyung-bae, CEO of HMM, and Kim Yong-seok, CEO of Lotte Fine Chemical.

The two companies previously signed a "Green Ammonia Transport and Bunkering Consortium MOU" in 2021. This time, they expanded their business cooperation areas by adding ammonia maritime transport and methanol bunkering.

Through this agreement, HMM will be responsible for the maritime transport of ammonia secured overseas by Lotte Fine Chemical. It will provide ammonia transport vessel supply as well as vessel operation and management services. Accordingly, HMM has laid the foundation to secure a leading position in the ammonia market, which is expected to expand in the future as an eco-friendly energy source.

Also, Lotte Fine Chemical, which has the largest ammonia storage facility in Korea, will secure eco-friendly ammonia and methanol to supply to HMM’s eco-friendly vessels. They plan to provide fuel stably through Lotte Fine Chemical’s global network.

HMM Signs MOU for Ammonia Maritime Transport Toward Carbon Neutrality

Ammonia is gaining attention as a next-generation eco-friendly energy source and is expected to expand as fuel for power plants and ships in the future. According to the International Energy Agency (IEA)’s “2050 Carbon Zero Roadmap” report, ammonia is projected to account for about 45% of ship fuel demand by 2050.

Kim Kyung-bae, CEO of HMM, said, “We are focusing the company’s full capabilities on eco-friendly businesses for carbon neutrality,” adding, “We will continue to make efforts to transport and secure eco-friendly fuels through proactive business cooperation.”

Kim Yong-seok, CEO of Lotte Fine Chemical, said, “This agreement signifies the proactive establishment of ammonia and methanol bunkering services in line with HMM’s plan to introduce ammonia and methanol-powered vessels,” and added, “The Lotte chemical group will seize the opportunity to expand the ammonia market in earnest through cooperation with carbon-neutral leading companies like HMM.”

Meanwhile, HMM is committed to eco-friendly activities to respond to climate change. In February, it signed a newbuilding contract for nine 9,000 TEU eco-friendly container ships powered by methanol fuel. It is also conducting a demonstration of a ship carbon capture system that captures carbon dioxide from exhaust gases generated during vessel operation. As a result of continuous carbon reduction efforts, it has shown visible achievements, such as reducing carbon emissions per TEU by 57.7% compared to 2010.