South Korean companies collaborate on green ammonia market
HMM, Lotte Fine Chemical, Lotte Global Logistics, POSCO, Korea Shipbuilding & Offshore Engineering and Korean Register of Shipping have formed a consortium and signed a memorandum of understanding on May 25 for the purpose of shipping and bunkering green ammonia.
Nowadays, the importance of ammonia is increasing as a carrier of green hydrogen and an environmentally friendly source of energy. When hydrogen is transported after synthesis with ammonia, existing transport networks can be used as is and the transport process results in virtually no loss. In addition, ammonia is an environmentally friendly fuel that does not emit carbon dioxide.
According to the regulations of the International Maritime Organization, greenhouse gas emissions from ships must be halved from 2008 to 2050. The International Energy Agency said in its May 18 report that ammonia will likely account for 45% of global ship fuel demand in 2050. The percentage equals 100 trillion won given the current price of ammonia and the current market size.
Currently, a European consortium and a multinational consortium led by Singapore are trying to take the lead in this market with enormous growth potential. The South Korean consortium is unprecedented in that the members are well-known companies sharing the same nationality and it covers all stages of the value chain from the production and distribution of green ammonia to development and manufacturing. operation of ships.
The role of the consortium is particularly important as South Korea has its own limitations in terms of purchasing green hydrogen on a large scale and importing green hydrogen based on ammonia synthesis is a more option. viable for her.
According to the MOU, members will share and use their resources for better cooperation in the green ammonia market. Specifically, Korea Shipbuilding & Offshore Engineering will develop ammonia fueled and bunker vessels and the Korean Register of Shipping will be in charge of certification. HMM and Lotte Global Logistics will operate the vessels, POSCO will produce green ammonia overseas, and Lotte Fine Chemical will transport, store and store the green ammonia.