Australian and Canadian Ammonia Producers Set to Supply South Korea’s Power Generation Sector

Australia’s Pilot Energy has been approved as a potential low-emission ammonia supplier for South Korea’s power generation needs. In May 2025, the South Korean government announced plans to establish a clean hydrogen power bidding market, which will include ammonia co-firing at existing coal power plants. This market will have an annual bidding volume of 6,500 GWh with 15-year contracts, and commercial operations are expected to start by 2028 following a three-year preparation period and a one-year grace period.

The market will operate under the newly launched Clean Hydrogen Production Standard (CHPS) scheme. South Korean power producers participating in CHPS auctions must secure fuel from CHPS-certified projects. Pilot Energy’s ammonia project in Western Australia has pre-qualified for CHPS certification through approval from the Korean Energy Economics Institute, which regulates this certification process.

CHPS also offers subsidies for South Korean industrial users to help cover the higher cost of clean hydrogen and ammonia compared to coal and other fossil fuels. Pilot Energy aims to supply South Korea with 1 million tons per year of CCS-based ammonia from its Mid West Clean Energy Project, intended for both co-firing in power plants and industrial applications.

Pilot plans to use 8 Rivers’ 8RH2 hydrogen production technology at its facility, integrated with the Cliff Head storage site in Western Australia. The project will eventually incorporate electrolytic hydrogen feedstock, with oxygen by-products from electrolysis purified and utilized as feedstock in the 8RH2 process.

Korea Southern Power Partners with Hydrogen Canada for Ammonia Production Korea Southern Power (KOSPO) has signed a memorandum of understanding with Hydrogen Canada Corporation (HCC) to jointly develop HCC’s CCS-based ammonia production facility in Alberta, Canada. The 1 million ton-per-year plant will be located in Alberta’s Industrial Heartland, with front-end engineering design work scheduled to begin in early 2025. KOSPO, which operates approximately 10% of South Korea’s national grid, is expected to participate in the CHPS scheme.

The Alberta-based project presents an opportunity to leverage low-carbon natural gas to support South Korea’s decarbonization goals and boost energy security across Asia. The availability of cost-effective carbon sequestration provides a strategic advantage for this project within Alberta’s Industrial Heartland. Additionally, project partner E1 Corp., a major LPG trader in Asia, sees high market demand for affordable, reliable energy from Western Canada.