South Korean chemical producer Lotte Fine Chemical (LFC) will import 50,000t of blue ammonia from Saudi Arabia by the end of this year, as part of its efforts to establish a global clean hydrogen and ammonia supply chain.
LFC, a subsidiary of petrochemical producer Lotte Chemical, on 26 October signed a contract with Saudi Arabian chemical manufacturer Sabic, a subsidiary of Saudi Aramco, and Saudi Arabian mining company Ma'aden to import 25,000t of clean ammonia from each company by the end of this year. The clean ammonia will be imported to LFC's ammonia terminal in South Korea's Ulsan port, the firm announced on 27 October.
There have been other initial agreements for the promotion and supply of clean ammonia and hydrogen projects globally, but this marks the world's first commercial contract that will supply clean ammonia certified by Germany-based industrial accreditation provider TUV Rheinland, according to LFC.
Saudi Arabia's decision to export its first TUV Rheinland-certified blue ammonia to South Korea follows oil minister Prince Abdulaziz bin Salman's declaration to transform Saudi Arabia into the world's largest hydrogen exporter in October last year, LFC said.
Saudi Arabia has set out plans to achieve net zero greenhouse gas emissions by 2060. The contract is "an extension of Ma'aden's commitment to achieving [the] Saudi 2030 ESG Vision through low-carbon ammonia production", Ma'aden business head Hassan Al Ali said.
LFC added that South Korea's willingness to establish a hydrogen economy was a factor that influenced Saudi Arabia's decision to export to South Korea.
South Korea's trade, industry and energy ministry is planning to introduce a hydrogen certification system in 2024, and the supply contract is expected to further establish specific certification standards.
LFC is attempting to commercialise converting ammonia into hydrogen and is involved in a national project to build demonstration facilities at its Ulsan plant. The firm's parent company Lotte Chemical plans to produce 1.2mn t of clean hydrogen by 2030.
Ammonia is currently used in various industries in South Korea, including synthetic fiber, plastic and semiconductor manufacturing, and is expected to be used as a low-carbon energy source for mixed combustion with coal in domestic thermal power plants by 2025, LFC said.
