LSB Industries, Inc. (“LSB”) (NYSE: LXU) and Amogy Inc. (“Amogy”) jointly announced today their partnership via a memorandum of understanding (MOU) to foster the use of low-carbon ammonia as a sustainable fuel for the U.S. inland waterways transportation sector. This collaborative effort will primarily focus on expanding the knowledge, use, and promotion of low-carbon ammonia as a sustainable fuel source.
Both companies will collaborate on evaluating and developing a pilot program, integrating LSB’s low-carbon ammonia and Amogy’s ammonia-to-power solution. The ultimate goal is to create a broader understanding and adoption of low-carbon ammonia as a potential solution to decarbonize the commercial transportation sector.
Mark Behrman, President, and Chief Executive Officer of LSB Industries, emphasized the company’s strategic vision: “Our vision at LSB is to be a leader in the energy transition through the production of low and no-carbon products. This collaboration agreement is an exciting step in our journey toward achieving our goals, and we’re thrilled to be working with such an outstanding partner in Amogy.”
The companies plan to extend their collaboration toward larger-scale development after completing the evaluation and pilot program. This includes exploring opportunities for creating an end-to-end supply chain of low-carbon ammonia and implementing Amogy’s technology across diverse applications, including maritime vessels. In addition, the evaluation and pilot program could potentially involve collaborations with other parties in the ammonia value chain.
Moreover, LSB and Amogy will cooperate on advocacy, education, and outreach initiatives concerning using ammonia as fuel.
Seonghoon Woo, CEO of Amogy, expressed his delight at the partnership, stating, “We’re delighted by this opportunity to work with LSB to advance the development of a low-carbon ammonia supply chain primarily in the US. The success of this collaboration will be a key step toward solidifying ammonia’s position as a comprehensive solution for decarbonizing the commercial transportation sector across the entire value chain, from the upstream production to the downstream usage.”
The announcement underlines a significant milestone in advancing sustainable fuel options and mitigating the environmental impact of commercial transportation. The partnership between LSB and Amogy thus represents a concerted effort to address global climate challenges through innovation in the energy sector.