LOTTE Fine Chemical has agreed to supply 1,500 tonnes of green ammonia to Amun Energy over a one-year period beginning in 2027, in what Fertilizer Daily Markets describes as South Korea’s first green ammonia supply agreement for electricity generation. The outlet cited an October 8 report by the Seoul Economic Daily on the contract, which brings LOTTE’s ammonia business into a new energy application.
Amun Energy is a joint venture between GS E&C and US-based Amogy, established in April. It is developing a 1 MW demonstration plant fuelled by ammonia at the Yeongil Bay industrial complex in Pohang, within a district designated for distributed energy. The project’s timetable places the initial supply period ahead of its planned start of commercial operations in 2028.
The venture intends to increase generating capacity in stages, potentially reaching 40 MW. LOTTE has priority negotiation rights for ammonia supplies as the facility expands, according to the report. The specified contract volume covers the initial one-year period; the report gives no additional tonnage for the proposed expansion. The initial agreement and the rights to negotiate subsequent supplies are therefore separate elements of LOTTE’s involvement.
Fertilizer Daily Markets reported that LOTTE entered the ammonia market in 1984 and now handles roughly 700,000 tonnes annually, ranking third worldwide by volume among individual companies. It also reported that LOTTE owns Asia’s largest ammonia storage tank, at Ulsan. During 2026, the company became the first to import green ammonia in March and started commercial green ammonia bunkering for vessels in April.
LOTTE ammonia division head Hwang Seok-min characterised the agreement as an initial step towards establishing a green ammonia supply chain for power generation. Fertilizer Daily Markets placed the deal alongside growing competition between energy and fertilizer uses for low-carbon ammonia, citing new export capacity such as China Huadian’s 100,000-tonne-a-year Yingkou plant.