South Korea’s major chemical firm Lotte Chemical [011170:KS] and Japanese trading house Itochu [8001:JP] will team up in businesses including ammonia trading, ammonia infrastructure utilization, and hydrogen-ammonia market development, as reported by the Korea Economic Daily on July 22. Lotte Chemical will combine its ammonia distribution and utilization infrastructure as well as expertise with Itochu’s capabilities in ammonia storing, aiming to realize carbon neutrality for one of the businesses. In addition, the two companies will jointly invest in ammonia production facilities and seek further collaboration in hydrogen.

The deal was formed one month after Lotte Chemical inked an agreement with South Korean major liquefied petroleum gas (LPG) provider SK Gas [018670:KS] to set up a joint venture (JV) for manufacturing by-product hydrogen and hydrogen for transport. Lotte Chemical eyes the booming market for hydrogen fuel and fuel cells made from by-product hydrogen. The company plans to build facilities with an annual hydrogen production capacity of 600,000 tons by 2030, aiming for a 30% share in the domestic hydrogen market. In addition, the firm announced plans this May to pour KRW6tr (USD4.7bn) into the hydrogen business and KRW4tr (USD3.2bn) into the battery material business by 2030. Lotte Chemical, along with three other chemical subsidiaries of Lotte Group [004990:KS], vowed to achieve KRW6tr (USD5.38bn) in accumulated revenue from eco-friendly products by 2030 to realize carbon neutral growth.

Sources:

https://www.kedglobal.com/hydrogen-economy/newsView/ked202207220015

https://www.kedglobal.com/hydrogen-economy/newsView/ked202206020015

https://asia.nikkei.com/Business/Materials/Lotte-Chemical-to-pour-8bn-into-battery-materials-and-hydrogen