Thursday, May 27, 2021

Asian Based Group to Investigate the Practicalities of Green Ammonia as a Maritime Fuel

MoU Commits Partners to Build and Test Vessel
Shipping News Feature

SOUTH KOREA – Hyundai Merchant Marine (HMM) has signed a memorandum of understanding (MoU) with LOTTE Fine Chemical, Lotte Global Logistics, steel maker and technology company POSCO, the Korean Register (KR), and Korea Shipbuilding & Offshore Engineering (KSOE) to seek feasible solutions to the green ammonia supply chain.

Under the terms of the MoU, each member pledged joint efforts to form the end-to-end supply chain for ammonia bunkering, including production, storage, and transportation of green ammonia.

More specifically, Korea Shipbuilding & Offshore Engineering (KSOE) plans to develop an ammonia-powered ship, which will be certified by Korean Register (KR). HMM and Lotte Global Logistics will then 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, 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.”

Photo: From left to right - Jong-chul Choi (Executive Vice President, HMM), Hyung-chul Lee (Chairman & CEO, Korean Register), Sung-joon Kim (Senior Executive Vice President, KSOE), Kyung-Moon Jung (CEO, LOTTE Fine Chemical), Byeong-Og Yoo (Senior Executive Vice President, POSCO), Chan-bok Park (CEO, Lotte Global Logistics)