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South Korea’s Lotte Chemical to join Saudi Aramco’s global alliance for blue hydrogen and ammonia
Representatives of Lotte Chemical discussed supplying 1.5 million tonnes of blue hydrogen to South Korea with Aramco.
Aiming to produce 11 million tonnes of low-carbon ammonia by 2030, Saudi Aramco is building a global alliance for blue hydrogen and blue ammonia. Among other partners, South Korean firm Lotte Chemical is also likely to join Aramco in its project to supply low-emission fuel to the world. Officials from Aramco and Lotte discussed ways to supply 1.5 million tonnes of blue hydrogen to South Korea during a recent meeting.
Lotte Chemical is expected to make a major investment in Aramco’s blue hydrogen production project if the deal goes through. This is important since the global demand for hydrogen fuel is expected to grow at a rate of 6.2% annually, and will surpass 500 million tonnes a year by 2050. Another South Korean firm GS Energy had also invested in a blue ammonia project in the UAE last year.
Created by separating hydrogen from natural gas and capturing carbon during the process, blue hydrogen is considered a realistic alternative, till the costs of producing green hydrogen are reduced. At the same time, scientists have their doubts, since 25% more natural gas is burnt to make blue hydrogen, than what would be required for generating heat directly from natural gas.