LU, a company specializing in hydrogen-based green energy, has broken ground on the construction of infrastructure for green hydrogen and green ammonia transportation as well as a solar-powered dedicated port in the Ruwais Hamra Hydrogen Zone in Abu Dhabi, UAE.

According to LU, on the 4th, a groundbreaking ceremony for the world's first solar-powered dedicated port for green hydrogen and green ammonia transportation was held in Dubai, UAE, during the UN Climate Change Conference (COP28). The ceremony was attended by Mohamed Rashed Musabbah Alremeithi, Chairman of the AlphaTan Group, Se-ho Kim, Chairman of LU, Harry Chang, Executive Director of Chinese investment firm Cherish Capital, Jo Jung-hoon, President of the Korea Building Energy Technology Institute, Park Soon-kwan, attorney from Barun Law, and KOTRA representatives.

Groundbreaking during COP28 for a Dedicated Green Hydrogen and Ammonia Port

The groundbreaking ceremony was scheduled to coincide with COP28, held in Dubai from November 30 to December 12, where world leaders gathered to discuss climate change.

LU plans to sequentially construct a 200MW solar-powered green hydrogen and ammonia plant once the infrastructure for green energy transportation is completed. Starting in 2027, the company aims to import tens of thousands of tons of green ammonia annually to supply throughout South Korea.

Se-ho Kim, Chairman of LU, expressed, "The successful initiation of the green hydrogen industry in the Middle East, which was deemed impossible for a small company, is the result of the unified efforts of many employees. We will ensure the smooth progress of this project to position our country as a green energy self-reliant nation."

Previously, LU signed business and investment agreements with AlphaTan Holding Investment and established a special purpose company (SPC) named 'AlphaTan LU Green Energy'. The company secured investments in May following these agreements.

Based on these achievements, in June, LU signed a four-party business agreement with Jeollabuk-do, AlphaTan, AlphaTan-LU Green Energy, and LU to establish the largest green hydrogen and ammonia supply hub in South Korea through the exclusive hydrogen port at Saemangeum New Port.

In July, the UAE government provided LU with a 2.45 million square meter site in the Ruwais Hamra Hydrogen Zone, equivalent to 340 football fields, for the construction of a dedicated port for domestic transportation of green hydrogen and ammonia.

Stable Supply of Domestic Green Hydrogen

According to LU, the Ruwais Hamra area, designated as a hydrogen zone by the UAE government, is receiving full support, and this port is expected to become an export hub for green hydrogen and ammonia produced in the zone. The UAE government is heavily invested in green energy projects due to the region's optimal conditions for solar power generation, making it cheaper than nuclear power and ideal for shipping and maritime transportation.

The expansion of the project is anticipated to ensure a stable supply of domestic green hydrogen, which is expected to increase significantly after 2027.

Harry Chang, Executive Director of Cherish Capital, stated, "China views the green hydrogen and green ammonia market very positively, and we concluded that AlphaTan LU Green Energy is a valuable SPC with deep expertise in this field. We want to invest up to $60 million and start joint development as soon as possible."

Mohamed Rashed Musabbah Alremeithi, Chairman of the AlphaTan Group, commented, "Our focus on green hydrogen and green ammonia stems from a national desire to improve the lives of our citizens through renewable energy beyond oil money. Given the necessity to secure more green energy by 2027, large-scale additional facility expansion is imperative."