Japan and South Korea plan to establish joint supply chains in carbon-neutral fuels such as hydrogen and ammonia.

According to the Nikkei News, South Korean President Yoon Seok-yul and Japanese Prime Minister Fumio Kishida, who will attend the Asia-Pacific Economic Cooperation (APEC) summit in the United States, are scheduled to meet with Stanford University on the 17th. During this visit, they will unveil their "Hydrogen and ammonia Global Value Chain" strategy. The financial institutions will help companies from both countries raise funds to jointly invest in hydrogen and ammonia production projects in countries such as the Middle East and the United States, with the aim of developing a maritime supply chain to transport these fuels from around the world by 2030.

The cooperation envisions the governments and public financial institutions of both countries providing financial support for joint investments in hydrogen and ammonia projects, especially in third countries such as the Middle East and the United States.

In addition, the plan includes strengthening the maritime transport supply chain, with the goal of significantly improving the operating environment for hydrogen and ammonia trading globally by 2030.

The Nikkei highlighted the industrial characteristics shared by South Korea and Japan, noting their dependence on energy-intensive industries such as steel and chemicals, as well as on imported fuel. The cooperation is expected to strengthen price negotiation capabilities and ensure stable fuel supplies for both countries.

The use of hydrogen and ammonia does not emit carbon dioxide when burned, providing a sustainable solution for carbon reduction. The industry still faces huge challenges in securing supplies of hydrogen and ammonia, which Japan and South Korea hope to solve through a partnership.

In addition, Japan's Mitsubishi Corporation, South Korea's Lotte Chemical and German energy giant RWE are working on a joint project to produce 10 million tons of fuel ammonia per year in the United States. Japan's Mitsui and South Korea's GS Energy are also involved in a project led by ABU Dhabi National Oil Company that is expected to produce 1 million tons of ammonia per year.

Clarkson data shows that there are currently only two ammonia fuel vessels under construction orders, both of which are 45,000 Cu.M., built by Hyundai Mipo for Belgian shipowner Exmar LPG BVBA. Capacity LPG carrier; In addition, NCL Oslofjord recently announced that it will have an ammoniac-fueled container ship in 2026. At present, there are 8 hydrogen fuel vessels in operation with a total of 10,514 deadweight tons, including the inland river patrol ship "Three Gorges Hydrogen Boat 1" built by China; There are 18 hydrogen fuel vessels on hand order, a total of 52,660 deadweight tons, of which one is a crew transport ship undertaken by our shipyard, and one is a tug boat undertaken by a Japanese shipyard.