Hyundai, Ulsan City to establish Korea’s first mega-scale ammonia import facility

1.25 million tons throughput annually at new port development

Click to learn more. Graphic visualisation of the new ammonia storage facility in Ulsan. Source: Ulsan City/Ulsan Jeilbo.

Ulsan Metropolitan City and Hyundai Oil Terminal have signed a MoU for the investment of $1.6 million (KRW 2.34 billion) for new ammonia storage facilities and import infrastructure on Korea’s southeast coast. The investment comprises the second phase of the City’s new Namsin Port development, becoming the first commercial ammonia storage facility in Korea, capable of handling 1.25 million tons of ammonia every year.

By December 2028, two large-scale (80,000m³) ammonia storage tanks will be completed, giving the facility an annual throughput capacity of 1.25 million tons of ammonia per year. A Dolphin pier with two berths for 50,000 dwt vessels and a 4km transfer pipeline for offshore loading/unloading will also be built, unlocking import and export capabilities. By July 2026, Hyundai Oil will have completed the first phase of the Namsin Port: 300,000m³ total storage capacity for liquid cargoes.

This investment will be a key driving force to make Ulsan Port a global clean energy and logistics center. We will play a role as a leading eco-friendly fuel supply base (infrastructure) and win-win with the region.

Shin Dong-Hwa, CEO of Hyundai Oil Terminal, in Ulsan Metropolitan City’s official press release, 22 Oct 2025

Hyundai Oil Terminal Co., Ltd.’s large-scale investment is further strengthening Ulsan’s port competitiveness and green energy industry base. The city of Ulsan will lead the creation of high-quality jobs and revitalize the local economy through active support.

Ulsan Mayor Doo-Kyum Kim, in Ulsan Metropolitan City’s official press release, 22 Oct 2025

“Ulsan Ammonia Bunkering Regulatory Free Zone”

In May this year, Ulsan City designated the “Ulsan Ammonia Bunkering Regulatory Free Zone”, easing the regulatory burden on first-movers to develop and demonstrate ammonia bunkering in and around Ulsan Port. From June 2025 to December 2027, twenty-three organizations including Ulsan Techno Park, the Korea Institute of Marine Equipment, Ulsan University and Hyundai Heavy Industries will participate, with $11.2 million committed by city authorities.

The main business contents are divided into three areas: foundation construction, demonstration research and development, and commercialization support. The infrastructure includes the establishment of a safety training system for the supply of ammonia trucks and ships, and the demonstration research and development is carried out by step after the development of the supply equipment, and the performance evaluation and demonstration are carried out. Support for commercialization is provided for insurance, commercial support, etc.

With this special zone designation, it is possible to demonstrate the sea supply using mobile tank lorries [which is otherwise prohibited].

Details of the “Ulsan Ammonia Bunkering Regulatory Free Zone” initiative, as reported in “Ulsan City Designated as Ammonia Bunkering Regulatory Free Zone”, Busan Economic Daily, 23 May 2025

In particular, the new designation will unlock ammonia-related activities that are otherwise restricted or prohibited by local regulation, including transfer of ammonia fuel via a ship-to-truck method. Ulsan City’s announcement notes that – previously – ships had to be brought on-land to ammonia refueling facilities.