In a strategic move towards advancing clean energy initiatives, a memorandum of understanding has been inked between CIP and LOTTE, aimed at fostering collaboration on clean ammonia projects.

Under the agreement, the two entities commit to engaging in discussions and finalising agreements pertaining to the supply, purchase, and sale of blue ammonia to LOTTE from CIP’s St. Charles Project in Louisiana, U.S., as well as green ammonia from CIP’s Murchison Project in Australia.

Furthermore, CIP and LOTTE express their intention to initiate discussions regarding the development and investment in low-carbon ammonia projects on a global scale. Additionally, they plan to explore potential collaboration opportunities in infrastructure bunkering and other sectors associated with low-carbon ammonia.

JinKoo Hwang, CEO and head of the Hydrogen Business Group at LOTTE Chemical Corporation, expressed enthusiasm about the collaboration with CIP, highlighting CIP’s esteemed position as a global leader in greenfield renewable energy investments. He underscored the pivotal role of the Korean government’s supportive policies in driving energy transition initiatives, positioning Korea as a rapidly growing market for clean hydrogen and ammonia.

Søren Toftgaard, partner at CIP, emphasised the coexistence of blue and green ammonia as integral components in the gradual transition from fossil-based production methods. He outlined the significant opportunities for both types of ammonia in regions such as the U.S., Europe, and Asia. Toftgaard lauded the partnership with LOTTE as a crucial step towards advancing ammonia project development and offtake to Korea, foreseeing it as a catalyst for unlocking further opportunities for CIP’s Energy Transition Fund.

Blue ammonia, leveraging a low-carbon approach by integrating traditional ammonia synthesis with carbon capture and storage, holds the potential to expedite the energy transition journey. Meanwhile, the production of green ammonia at scale is progressively maturing, contributing to the sustainable evolution of the energy landscape.

For more information visit www.cipartners.dk

15th March 2024