OCI inks deal to supply S Korea's LFC with bio-ammonia

Market: Fertilizers, Hydrogen
20/03/23

Chemical firm OCI Global and South Korean producer Lotte Fine Chemical (LFC) have signed an agreement for the supply of bio-ammonia on 17 March.

OCI will supply LFC with bio-ammonia from its existing production capacity in Texas starting this year, aiming to decarbonise the chemical value chain and power sector. LFC will bring OCI's ISCC Plus bio-ammonia — derived from bio-methane — into South Korea for domestic use. If bio-certified, plastic products made from the material will be eligible for tax benefits when exported to Europe.

"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," said chief executive officer of OCI Global and Fertiglobe, Ahmed El-Hoshy.

OCI and LFC plan to create a global bunkering supply chain for ammonia-powered vessels in Ulsan, South Korea, which is expected to be commercialised by 2025. LFC will tap on its Ulsan port ammonia tank facilities, and OCI has plans to set up a supply chain and bunkering network by utilising its ammonia storage infrastructure in the Netherlands' Rotterdam, near Suez in Egypt and in the US Gulf.

By Dinise Chng

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