Shipping company Hyundai Merchant Marine (HMM) has signed a memorandum of understanding (MoU) with five South Korean organisations to launch a consortium for exploring feasible green ammonia supply chain solutions.
Apart from HMM, the consortium includes Lotte Fine Chemical, Lotte Global Logistics, POSCO, Korean Register (KR) and Korea Shipbuilding & Offshore Engineering (KSOE).
The members will collaborate to develop an end-to-end supply chain for green ammonia, including its production, bunkering, storage and transportation.
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.”
KSOE will work on the development of an ammonia-driven vessel, which will receive certification from KR.
The testing and operations of the vessel will be jointly carried out by HMM and Lotte Global Logistics.
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Posco will be involved in the production of green ammonia overseas, which will be transported by Lotte Fine Chemical.
Lotte Fine Chemical will also be responsible for carrying out the bunkering operations.
In a statement, the company said: “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.”
Recently, Japanese firm Itochu signed an MoU with five marine companies for facilitating the joint development of an ammonia fuel supply chain in Singapore.