OCI Global and Lotte Fine Chemical (LFC) have announced a collaboration to provide bio-ammonia for the chemical and power sectors, aiming to decarbonize their value chain.
OCI will supply LFC with bio-ammonia from its Texas production capacity, starting this year. LFC will import OCI’s ISCC Plus bio-ammonia, derived from bio-methane, for domestic use in South Korea.
If the material is bio-certified, plastic products made from it will qualify for tax benefits when exported to Europe.
According to Ahmed El-Hoshy, CEO of OCI Global and Fertiglobe, “South Korea is rapidly becoming an important market for clean ammonia in the power and chemicals sectors in particular and can become an important bunkering hub for clean ammonia in Asia.”
OCI and LFC have plans to establish a global bunkering supply chain for ammonia-powered vessels in Ulsan, South Korea, with commercialization anticipated by 2025.
LFC will leverage its Ulsan port ammonia tank facilities, while OCI intends to establish a supply chain and bunkering network using its ammonia storage infrastructure in Rotterdam, the Netherlands, near Suez in Egypt, and in the US Gulf.