Lotte Chemical, CF Industries sign MOU for ammonia production, distribution

Industry

Published: 28 Feb. 2023, 15:20

Lotte Chemical, CF Industries sign MOU for ammonia production, distribution

Hwang Jin-koo, head of the hydrogen energy business at Lotte Chemical, right, shakes hands with Tony Will, president and chief executive officer of CF Industries Holdings, after signing an MOU on amonia production. [LOTTE CHEMICAL]

Lotte Chemical signed a memorandum of understanding (MOU) with CF Industries, the world’s biggest ammonia producer based in the United States, to collaborate on the production and distribution of the gas.

The two parties said Tuesday that the MOU will serve as a framework to explore the joint development of and investment in an ammonia production facility in Louisiana and the distribution of the gaseous compound to Korea.

For Lotte, the preliminary agreement will accelerate its push to increase hydrogen energy production using clean sources. CF Industries will be able to expand their client base while benefiting from tax incentives from the Inflation Reduction Act.

The executives of the two companies expressed their expectations.

“We are pleased to advance our relationship with Lotte and leverage the world-class expertise of both companies to meet the substantial emerging demand for clean ammonia in South Korea,” said Tony Will, president and chief executive officer of CF Industries Holdings.

Hwang Jin-koo, head of the hydrogen energy business at Lotte Chemical, echoed the optimistic prospects, saying that “in order to bolster the domestic hydrogen economy, it is important to secure a stable supply of clean hydrogen and ammonia, especially in overseas regions with abundant energy and low geopolitical risks.”

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]