CIP, Lotte Chemical to partner on blue and green ammonia

Danish fund manager Copenhagen Infrastructure Partners (CIP) on Tuesday unveiled a memorandum of understanding with Korean chemical company Lotte Chemical Corp (KRX:011170) to partner on clean ammonia projects.

Under the agreement, signed by CIP through its Energy Transition Fund, the parties will discuss and conclude contracts for the supply of blue ammonia to Lotte from CIP’s St Charles project in Louisiana, US, and green ammonia from CIP’s Murchison project in Australia.

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In addition, the two companies will explore development of and investment in low-carbon ammonia projects globally, as well as potential collaboration in adjacent sectors such as infrastructure bunkering.

“We believe blue and green ammonia will co-exist for many years, as we gradually transition from fossil-based production,” CIP partner Soren Toftgaard said, adding that CIP continues to see significant opportunities for both in the US, Europe and Asia.

“With the Korean government’s strong policy support on energy transition, Korea will be the fastest growing market for clean hydrogen and ammonia,” according to JinKoo Hwang, CEO and head of Lotte’s hydrogen business group.