Lotte Chemical signs clean ammonia deal with RWE, Mitsubishi Corporation

Executivies from Lotte Chemical, RWE and Mitsubishi Corporation take a photo after signing an agreement to run a joint ammonia project in Jamsil-dong, southern Seoul, on Feb. 7. [LOTTE CHEMICAL]

Lotte Chemical signed an agreement with Germany’s RWE and Japan’s Mitsubishi Corporation to run a clean ammonia project in Texas.

The three hope to produce up to 10 million tons of ammonia, such as blue and green ammonia, starting in 2030 at the Corpus Christi port in Texas.

The produced ammonia will be exported to European and Asian countries.

Corpus Christi, a city in southern Texas, is home to the United States' biggest energy export terminal that is well equipped in terms of infrastructure and rich in natural resources, Lotte Chemical said.

"Through the latest project, Lotte Chemical will maximize our capability in the production, distribution and utilization of clean energy and strengthen our global network," said Hwang Jin-koo, president of Lotte Chemical’s basic material business.

Lotte Chemical announced last year it will invest a total of 6 trillion won ($4.8 billion) through 2030 to produce 1.2 million tons of clean hydrogen. It hopes to generate 5 trillion won in revenues solely through its hydrogen business.

The Korean company is already in cooperation with Malaysia-based Sarawak Energy Berhad and Kansas-based Tallgrass Energy on ammonia projects.

BY SARAH CHEA [chea.sarah@joongang.co.kr]