South Korean shipping major HMM, Korea Shipbuilding & Offshore Engineering (KSOE), Korean Register (KR), LOTTE Fine Chemical, Lotte Global Logistics and POSCO have signed a memorandum of understanding (MoU) to seek feasible solutions on 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, KSOE plans to develop an ammonia-powered ship, which will be certified by Korean Register (KR).
HMM and Lotte Global Logistics will 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, HMM unveiled in 2019 its target of reaching carbon neutrality by 2050 for its entire fleet. As part of achieving the target, the carrier has been seeking multiple sustainable energy sources, including biofuels, LNG, hydrogen, and green ammonia.
“We simply can’t decide and select one single carbon-neutral fuel at this moment, considering commercial viability, availability, and scalability,” an HMM official said.
“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.”