Copenhagen Infrastructure Partners (CIP), through its Energy Transition Fund, has signed a memorandum of understanding with LOTTE Chemical Corporation (LOTTE), one of the world’s largest producers of chemical products, to strengthen collaboration on clean ammonia projects.
The memorandum of understanding between CIP and LOTTE is intended to support collaboration on clean ammonia projects. As part of the agreement, the two companies agree to discuss and finalise agreements for the supply, purchase, and sale of blue ammonia to LOTTE from CIP’s St. Charles Project in Louisiana, US, and green ammonia from CIP’s Murchison Project in Australia.
CIP and LOTTE also agree to initiate discussions regarding development of and investment in low carbon ammonia projects on a global basis. The two companies also intend to discuss potential collaboration on projects in infrastructure bunkering and other sectors in connection with low carbon ammonia.
CEO and head of hydrogen business group of LOTTE Chemical Corporation JinKoo Hwang says: ‘We are delighted to cooperate with CIP, a global leader in greenfield renewable energy investments. With the Korean government’s strong policy support on energy transition, Korea will be the fastest growing market for clean hydrogen and ammonia. We will take lead in providing sustainable clean ammonia by utilising the strengths and expertise of both companies.’
‘We believe blue and green ammonia will co-exist for many years, as we gradually transition from fossil-based production. And we continue to see significant opportunities for both in the U.S., Europe, and Asia,’ adds CIP partner, Søren Toftgaard.
Blue ammonia is a low-carbon approach which combines traditional ammonia synthesis using natural gas with subsequent carbon capture and storage and could significantly accelerate the energy transition while green ammonia production at scale is becoming more mature.
