HMM Joins Korea Shipbuilding to Explore Ammonia Supply Chain
A consortium of Korean companies, including HMM and Korea Shipbuilding & Offshore Engineering, is forming a new partnership to explore the development of a green ammonia supply chain. According to the partners, they hope that South Korea can establish itself as an Asian hub for green energy technology.
Under the terms of the new agreement, HMM, KSOE, the Korean Register, LOTTE Fine Chemical, Lotte Global Logistics, and POSCO, will work together to seek feasible solutions on the green ammonia supply chain. Each company will focus on areas of the supply chain to form an end-to-end solution for ammonia bunkering, including production, storage, and transportation.
Korea Shipbuilding & Offshore Engineering (KSOE) plans to develop an ammonia-powered ship, which will be certified by Korean Register. HMM and Lotte Global Logistics will focus on testing and operating the vessel. POSCO will be responsible for the production of green ammonia overseas, while LOTTE Fine Chemical will transport the fuel and perform bunkering operations. Lotte Fine Chemical currently runs the country's largest ammonia storage facility.
HMM said this program will be part of its continuing efforts on a pathway to decarbonization based on collaborative work with competitive industrial players. “We simply can’t decide and select one single carbon-neutral fuel at this moment, considering commercial viability, availability, and scalability.” An HMM official said the company will spearhead an effort to promote the use of a range of alternative fuels in cooperation with top-rated industrial players with experience and expertise. In addition to this green ammonia project, HMM is seeking multiple sustainable energy sources, including biofuels, LNG, and hydrogen.
South Korea has been looking to accelerate its efforts focusing on ammonia and other alternative fuel sources. POSCO and Hyundai’s car group have been exploring green hydrogen while POSCO has also been working on developing green ammonia and hydrogen supplies. South Korea’s shipbuilders are also working on several projects including an ammonia-fueled oil tanker and other ammonia propulsion systems.