NO: DELENG / 2017 / 70663
official media partner of national maritime foundation
HMM enters ammonia trades with LOTTE Fine Chemical
By SEA AND COAST | 25/04/2023
South Korea's flagship shipping company, HMM, has announced its intention to enter the ammonia trades, having signed a memorandum of understanding (MoU) with LOTTE Fine Chemical for the marine transportation of ammonia. The MoU also includes the bunkering of ammonia and methanol fuel.
The announcement is in line with HMM's enterprise-wide efforts to accelerate its environmental initiatives for a carbon-free future. The company launched a consortium with five Korean partners in 2021 to seek viable solutions to form the end-to-end supply chain for green ammonia, with LOTTE Fine Chemical being one of the five members. 
Under the terms of the MoU signed between HMM and LOTTE Fine Chemical, HMM will carry ammonia fuel secured by LOTTE Fine Chemical and take charge of overall vessel operation during transportation. On the other hand, LOTTE Fine Chemical, which boasts Korea's largest ammonia storage facility, plans to procure ammonia and methanol fuel for the supply to HMM's vessel.
The International Energy Agency's (IEA) Net Zero by 2050 scenario predicts that ammonia will account for around 45% of the demand for marine fuels by 2050, making it one of the most promising next-generation energy sources. As such, HMM's move to expand into the ammonia trades is not only a forward-thinking decision but also a strategic one.HMM's decision to embrace the ammonia trades demonstrates its commitment to exploring sustainable and clean energies, especially as it strives to reduce its carbon footprint.