JERA and Lotte: ammonia fuel value chain between Japan and Korea
By on September 19, 2024
Click to learn more. Lotte and JERA executives sign the new agreement to develop a low-carbon ammonia fuel chain between Japan and South Korea.
JERA and Lotte Fine Chemical (LFC) have signed an agreement to develop a low-carbon fuel value chain between Japan and South Korea, working alongside the governments of both countries. Focus areas will include standardised certification frameworks, and enhanced operational flexibility.
As a precursor to this new agreement, the two national governments established the “Japan-ROK Hydrogen and Its Derivatives such as Ammonia Cooperation Dialogue” in February this year. The first dialogue was held in June in Seoul, and featured a range of discussions including plans to set up working groups on carbon intensity and certification, hydrogen safety, and on codes and standards for the mobility and other sectors.
With similar industrial and energy consumption structures, collaboration between Korea and Japan is in progress to lead the clean hydrogen market. To expand the global clean hydrogen supply chain and vitalize the hydrogen economy, cooperation between the two countries in private sectors is significant and this agreement will be the milestone to realize the cooperation.
Chan Ki Park, Director-General, Hydrogen Economy Policy Bureau, Ministry of Trade, Industry and Energy, in JERA’s official press release, 23 August 2024
As JERA is playing a leading role in establishing a clean energy supply chain in Japan, we find this collaboration very meaningful. Lotte Fine Chemical has been building a competitive clean ammonia supply chain and making proactive investment based on its over half-century experience and the largest infrastructure of ammonia distribution in Asia. Through this agreement with JERA, we will take the next step to contribute towards enhancing the national competitiveness of Korea.
Kim Yong-seok, CEO of LFC, in JERA’s official press release, 24 August 2024
The two companies are both very active in the low-carbon ammonia space. JERA recently unveiled its long-term growth strategy in which hydrogen and ammonia featured prominently, with a target ammonia handling capacity of 7 million tonnes per-year by 2035. This year, Lotte has indicated that it is leading ongoing talks to offtake low carbon ammonia from Copenhagen Infrastructure Partners’ planned production plants in the US and Australia. Lotte is also developing an 800,000 tons per-year renewable ammonia plant in Sarawak, Malaysia.