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Lotte Chemical and Itochu Corporation Signed an MOU for Hydrogen and Ammonia Business Cooperation

By July 22, 2022 3   min read  (499 words)

July 22, 2022 |

Fuel Cells Works, Lotte Chemical and Itochu Corporation Signed an MOU for Hydrogen and Ammonia Business Cooperation

Japan’s ITOCHU CORPORATION signed a comprehensive MOU on ammonia utilization, facility investment, and hydrogen business cooperation to realize carbon neutrality at the Tokyo headquarters

Lotte Chemical has established a cooperative relationship with a leading general trading company in Japan to secure a stable supply of hydrogen and ammonia in East Asia and expand the market.

On the afternoon of the 21st (Thursday), at the headquarters of ITOCHU CORPORATION in Tokyo, Japan, Hwang Jin-goo, head of the hydrogen energy business division (concurrently serving as the representative of basic materials business) of Lotte Chemical, and Masaya Tanaka, general representative of Itochu Corporation’s Energy and Chemicals Company, attended the event.・Comprehensive cooperation MOU for ammonia business was signed.

For cooperation in the field of hydrogen and ammonia, which is attracting attention as a future energy for realization of carbon neutrality, the two companies will cooperate in the ammonia trading business  cooperate in the use of ammonia infrastructure for the Korean and Japanese markets  develop the hydrogen ammonia market in Korea and Japan Cooperation  Joint investment in clean ammonia production facilities  Establishment of additional cooperation model in the hydrogen field, etc., agreed to jointly cooperate in comprehensive fields.

Ammonia is attracting attention as a hydrogen carrier that can be transported and stored efficiently at low cost, and as a fuel that does not emit carbon dioxide (CO2), it reduces greenhouse gas emissions when used in thermal power plants or ships.

“Lotte Chemical’s ammonia distribution and utilization infrastructure, business experience, etc. met with Itochu Corporation’s ammonia bunkering business know-how and global network to create a meaningful step towards achieving carbon neutrality,” said Hwang Jin-goo, head of the hydrogen energy business division at Lotte Chemical (concurrently serving as the representative of basic materials business). will pay,” he said.

Masaya Tanaka, General Manager of Energy and Chemicals Company of Itochu Corporation, said, “With Lotte Chemical, we are accelerating our response to the establishment of a sustainable energy system in Korea and Japan, and to procurement of competitive decarbonized fuel through joint procurement of ammonia and optimization of logistics, etc. We will aim to contribute to the SDGs (Sustainable Development Goals_Sustainable Development Goals)”, strengthen responses, and realize carbon neutrality.”

Meanwhile, Lotte Chemical has a goal of investing KRW 6 trillion by 2030 to produce 1.2 million tons of clean hydrogen, and to achieve sales of KRW 5 trillion by distributing and utilizing it. In particular, out of 1.2 million tons of hydrogen production, 600,000 tons will be supplied for power generation, 450,000 tons will be supplied for fuel cells and hydrogen gas turbines, and 150,000 tons will be supplied for transportation. It plans to produce clean hydrogen, convert it to ammonia, which is economical in terms of storage and transport, and then introduce it into the country.

Image: Masaya Tanaka, Itochu’s president of energy & chemical unit (left) and Hwang Jin koo, Lotte’s president of basic material business, shake hands after signing a memorandum of understanding on cooperation on July 21, 2022, at Itochu headquarters in Tokyo (Courtesy of Lotte Chemical)

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