The green ammonia produced jointly by South Korea and Oman will be sold immediately to Thailand and supplied to countries in Southeast Asia, so it will be interesting to see whether this project will become a global model for the commercialization of green hydrogen and green ammonia.
According to the industry on the 24th, ELU Pro, a Korean green energy company, signed a three-way agreement with Oman's largest energy company, Muscat House, and Thailand's energy company, MA Corporation, to produce, supply, and sell green ammonia at the Sofitel Hotel in Songpa-gu, Seoul on the 21st.
The signing ceremony was attended by Kim Se-ho, chairman of ELUPRO, Mohammed Al Rumihi, former Minister of Energy and Minerals of Oman, and Achiraj Son Itawan, CEO of MA Corporation.
In particular, former Prime Minister Chung Sye-kyun, Omani Ambassador to South Korea Zakaria Ahmed Al-Saidi, and former Deputy Prime Minister of Thailand Khun Da-buran-si also attended the signing ceremony, expressing their willingness to develop the project into a national cooperation project beyond future business-to-business transactions.
As the former Minister of Commerce, Industry and Energy and Prime Minister, Jeong played a leading role in establishing the government's hydrogen economy roadmap, including serving as the chairman of the Hydrogen Economy Committee, a cross-ministerial control tower.
Former Minister Luimi played a central role in shifting Oman's energy policy from oil-based to green energy, and is still said to have a strong influence in the energy industry in Oman.
Earlier this year, ELUFO established a local subsidiary in Oman, ELUFO Oman, with Muscat House as the chairman, and signed a contract with Muscat House to produce and supply green ammonia.
At the same time, ELUPRO also signed a green ammonia sales contract with Thailand's Ma Corporation. This tripartite agreement signifies that the business has begun in earnest as the business officials of the three countries gathered together for the first time.
Under the agreement, ELUPRO and Muscat House plan to begin construction of a green ammonia production facility in the Duhok Economic Free Zone on the east coast of Oman next year through ELUPRO Oman, and produce ammonia to supply to Thailand starting in 2027.
First, the two companies will produce 1 million tons of green ammonia per year and a total of 5 million tons over five years using a 2 gigawatt (GW) power generation facility to supply it to Thailand. The supply amount alone is 6.5 trillion won over five years, and the plan is to expand the power facilities to more than 5 GW to produce more than 2.5 million tons per year and expand the supply to global markets such as Thailand, Singapore, Malaysia, and South Korea.
The ammonia produced here is 'green ammonia' made using solar and wind power, and it is significant in that it is the world's first project to have a full cycle of production, transportation, and sales of green ammonia.
Ammonia (NH3) is a compound made up of nitrogen (N) and hydrogen (H), which is harmless to the human body and can be used as a raw material for fertilizers or as fuel for transportation.
In particular, hydrogen is safer and more economical to convert into ammonia and store and transport than to compress or liquefy it directly, so ammonia is attracting attention as a key hydrogen storage and transportation method in the era of the hydrogen economy.
However, converting hydrogen into ammonia or ammonia into hydrogen requires a huge amount of electricity, so securing price and cost-effectiveness has been considered the key to commercialization.
LUPRO plans to introduce a new business model in the era of energy transition by producing green hydrogen using cheap electricity from abundant solar and wind energy in the Middle East, converting it into green ammonia, and supplying green ammonia and green hydrogen that are more economical than other renewable energy and conventional fossil fuels such as bunker C oil.
“It costs about 330 won per kilowatt (KW) in Korea, but in Oman, green ammonia can be produced at a cost of 5 won per KW,” said Kim Se-ho, the chairman of ELUPro. ”It is economically viable enough to be established as a new business model in the era of energy transition.”
“The Duhuk region in eastern Oman can generate solar power all year round and also utilize wind power by using the abundant wind at Duhuk Port,” said Lumihi Elufroo, the chairman of ELUFO.
He went on to express his expectations, saying, “We will report the ELU PROO MAN project to our home country, complete the relevant licensing procedures in the first half of next year, and begin construction of the green ammonia production facility in the second half of the year. This project is the fastest-progressing green hydrogen project in Oman.”
Archirson Ma, CEO of the Corporation, said, “Thailand also has an obligation to achieve zero carbon emissions by 2050, but has been relying solely on solar and wind power.” “By signing the first green ammonia introduction contract in Thailand, we will be able to play a leading role in achieving carbon neutrality.”
In a discussion that followed the signing ceremony, former Prime Minister Chung Sye-kyun said, “I expect that the project will be a success if it is of high quality and cost-effective,” and “The Korean government should also hasten its green energy policy,” indicating that he will actively promote the importance of the green hydrogen and green ammonia business policies to the Korean government.
“We are in constant consultation with the governments of Oman and Thailand, as well as the Korean government, including the Ministry of Trade, Industry and Energy and the Ministry of Environment,” said Kim Se-ho, the chairman of LYPRO. ”Through this project, LYPRO will become a game changer in the era of energy transition.”
