Korean Partners Exploring Green Ammonia Supply Chain
South Korean shipping company HMM announced it has signed a memorandum of understanding (MoU) with LOTTE Fine Chemical, Lotte Global Logistics, POSCO, Korean Register (KR) and Korea Shipbuilding & Offshore Engineering (KSOE) to seek feasible solutions on the green ammonia supply chain from production to bunkering.
Each member will pitch in to form the end-to-end supply chain for ammonia bunkering, including production, storage and transportation of green ammonia.
Specifically, KSOE plans to develop an ammonia-powered ship, which will be certified by KR. HMM and Lotte Global Logistics take charge of testing and operating the vessel. Once POSCO produces green ammonia overseas, LOTTE Fine Chemical will transport the fuel and perform a bunkering operation.
As an environmental initiative, in 2019, HMM unveiled its target of reaching carbon neutrality by 2050 for its entire fleet. As part of achieving the target, HMM has been seeking multiple sustainable energy sources, including biofuels, liquefied natural gas (LNG), hydrogen and green ammonia.
An HMM official said, “We simply can’t decide and select one single carbon-neutral fuel at this moment, considering commercial viability, availability, and scalability. HMM 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.”