SK Materials joins forces with ExxonMobil in blue ammonia sector

South Korea's SK Materials will enter the blue ammonia market in partnership with global energy giant ExxonMobil.

SK Materials on Wednesday said it signed an agreement with its American counterpart on major conditions of their collaboration, which include mass production of blue ammonia using next-generation carbon capture technology and the fuel's adoption in South Korea.

Blue ammonia produces as a raw material blue hydrogen, from which CO2 has been removed, so carbon emissions are minimal during burning.

Power cogeneration using blue ammonia and coal has the advantage of reducing the same volume of carbon as that of the blue ammonia used.

ExxonMobil will build a blue ammonia plant in Baytown, Texas.

In South Korea, SK Materials plans to adopt blue ammonia for supply there as a power-generating fuel when domestic cogeneration is launched.

"We will supply blue ammonia as an energy source to take over as the country's main fuel for coal power generation, creating an environment that produces electricity while reducing CO2 emissions," a company source said.

SK Materials also plans to expand its cooperation with ExxonMobil to develop carbon reduction solutions over the mid- to long term.

“Based on our cooperation with ExxonMobil, we will build a value chain that produces, consumes and distributes blue ammonia in a more economical and eco-friendly manner,” said SK Materials CEO Lee Young-wook.

Write to Seo-Woo Jang at suwu@hankyung.com