HMM, Lotte Fine Chemical to partner for ammonia sea transport

South Korea's HMM Co. and Lotte Fine Chemical Co. have formed a partnership to transport and supply next-generation environmentally friendly fuel, ammonia, via sea transport.

The two companies recently signed a "carbon-neutral ammonia sea transport ammonia and methanol bunkering (ship fuel supply) agreement."

They have also established a "green ammonia transport and bunkering consortium agreement" with other major Korean companies, such as POSCO and Korea Shipbuilding & Offshore Engineering.

Lotte Fine Chemical, with the largest ammonia storage facility in Korea, will be responsible for securing and supplying the ammonia, while HMM will handle the sea transport. Ammonia, a hydrogen and nitrogen compound, is gaining attention as a transport vehicle for storing and transporting hydrogen. According to the International Energy Agency's "2050 Carbon Zero Roadmap" report, ammonia is expected to account for 45% of ship fuel demand by 2050.

"We are committed to environmentally friendly fuel transport and procurement through proactive business cooperation," said HMM CEO Kim Kyung-bae.

"The partnership will proactively establish bunkering services for ammonia and methanol based on HMM's plans to introduce ammonia and methanol propulsion systems," Lotte Fine Chemical CEO Kim Yong-seok explained.

Write to Mi-Sun Kang at misunny@hankyung.com