- The Korean petrochemical maker aims to take advantage of the US IRA that offers tax credits and incentives for production there
According to The Korea Economic Daily article published on February 28, 2023, Lotte Chemical Corp., a major South Korean petrochemical manufacturer, joined hands with CF Industries Holdings Inc., the world’s largest ammonia producer, for clean ammonia production in the US to expand its eco-friendly business in the global market.
Lotte and CF Industries on Monday signed a memorandum of understanding in Seoul to assess the joint development of and investment in a greenfield clean ammonia production facility in the US, including at CF Industries’ Blue Point Complex in Louisiana.
Lotte is set to build the facility based on CF Industries’ capabilities on ammonia plant operations and distribution networks to bring clean ammonia to South Korea, according to Lotte on Tuesday. CF Industries currently produces 10 million tons of ammonia a year.
“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 risk,” said Hwang Jin-koo, Lotte’s head of hydrogen business, in a statement.
“Through strategic collaboration with CF Industries, which has a long history and business experience, we will secure a production base in the USA and lead the global distribution channel," Hwang said.
The cooperation is expected to allow Lotte to take advantage of the US Inflation Reduction Act, which provides tax credits on clean ammonia production there and incentives for infrastructure establishment.
The South Korean company, which aims to produce and sell 1.2 million tons of clean hydrogen by investing a total of 6 trillion won ($2.3 billion) by 2030, has been seeking partnerships with global companies and investments to secure clean ammonia, a safe and efficient hydrogen carrier and storage mechanism.
