OCI Global said it has signed a Memorandum of Understanding (MOU) with South Korea’s Lotte Fine Chemical, a leading ammonia distributor in east Asia, for the supply of low-carbon and green ammonia. First shipments will start this year from OCI’s existing ammonia plant in Beaumont, Texas.
Lotte Fine Chemical will introduce OCI’s ISCC Plus bio-ammonia, derived from bio-methanol, for the first time in Korea for supply to its domestic customers. When bio-certified, plastic products made of this material will be eligible for tax benefits when exported to Europe, OCI said.
Future supply is also expected to come from OCI’s new 1.1 million mt/y blue ammonia greenfield project under construction in Beaumont, Texas, which is targeted to be operational in early 2025 (GM Feb. 10, p. 1; Dec. 9, 2022; Sept. 9, 2022).
Future supply is also targeted to come from Fertiglobe’s green ammonia plant in Ain Sokhna, Egypt, which commissioned its first phase last November (GM Nov. 11, 2022).
OCI and Lotte are also looking to cooperate to build a global supply of bunkering for ammonia-powered vessels in Ulsan port, Korea, which are expected to be commercialized from 2025 onwards.
The South Korean company operates ammonia tank facilities in the port, where there are plans to complete the installation of bunkering supply facilities by 2024.
OCI has plans to set up a global supply chain and bunkering network using its ammonia storage infrastructure located in Rotterdam in the Netherlands, and near Suez in Egypt, as well as in the US Gulf.