LOTTE Chemical-ITOCHU Corporation enter an MOU for hydrogen and ammonia business.

■ Entered a comprehensive MOU for the use of ammonia, facility investment, and hydrogen cooperation for carbon neutralization

    at the head office of ITOCHU CORPORATION in Tokyo, Japan on the 21st (Thurs). 

■ “LOTTE Chemical’s ammonia distribution and infrastructure and business experience, together with ITOCHU CORPORATION’s

    ammonia bunkering knowhow and global networks, will lead to significant footsteps to carbon neutralization,” said Hwang Jin-koo,

    the Head of Hydrogen Energy Division (President of Basic Material Division). 

■ LOTTE Chemical’s hydrogen energy business to achieve 5 trillion KRW in revenue by 2030 with investment of 6 trillion KRW and production,

    distribution, and use of 1,200,000 tons of clean hydrogen. 

LOTTE Chemical established a partnership with one of the leading corporations in Japan for stable supply of hydrogen and ammonia and market expansion in East Asia. 

It has been announced that Hwang Jin-koo, the Head of Hydrogen Energy Division (President of Basic Material Division), LOTTE Chemical and Danaka Masaya, the President of Energy Chemicals Company of ITOCHU CORPORATION, gathered with the related officers and employees to enter the ‘comprehensive MOU for hydrogen and ammonia business’ at the head office of ITOCHU CORPORATION in Tokyo, Japan, last 21st (Thurs).

The parties have agreed on comprehensive cooperation in the related areas for cooperation in regards to hydrogen/ammonia, the future energy for carbon neutralization, which include ▶ cooperation for ammonia trading, ▶ cooperation for ammonia infrastructures in Korea and Japan, ▶ cooperation for hydrogen and ammonia market development in Korea and Japan, ▶ joint investment for clean ammonia production facilities, and ▶ construction of additional cooperation models in relation to hydrogen. 

Ammonia attracts attention as a hydrogen carrier for efficient transport and storage at low cost and is capable of reducing greenhouse gas emission when used for thermopower generation and ships as it is free of carbon dioxide (CO2) emission. 

“LOTTE Chemical’s ammonia distribution and infrastructure and business experience, together with ITOCHU CORPORATION’s ammonia bunkering knowhow and global networks, will lead to significant footsteps to carbon neutralization,” said Hwang Jin-koo, the Head of Hydrogen Energy Division (President of Basic Material Division). 

“Along with LOTTE Chemical, we will pursue contribution to 「SDGs (Sustainable Development Goals)」, more stable responses, and carbon neutralization through joint procurement and optimum logistics of ammonia for competitive procurement of decarbonized fuels and construction of sustainable energy systems in Korea and Japan,” said Danaka Masaya, the President of Energy Chemicals Company of ITOCHU CORPORATION, as he congratulated on the MOU. 

LOTTE Chemical has set a goal to invest 6 trillion KRW by 2030 to produce 1,200,000 tons of clean hydrogen and to distribute and use it to achieve 5 trillion KRW in revenue.  With the policies to use 600,000 tons of hydrogen for power generation, 450,000 tons for fuel cells and hydrogen gas turbines, and 150,000 tons for transport, the 600,000 tons allocated for power generation will be produced as clean hydrogen abroad and converted to ammonia for stable storage and transport to Korea.