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Samsung Heavy Industries secures order for two VLACs

Collected: 2023.12.27

Distributed: 2023.12.28

Source: Go Direct

LNG carrier [Courtesy of Samsung Heavy Industries]

South Korea’s Samsung Heavy Industries Co. said Tuesday that it has won a 310.8 billion won ($240 million) deal to build two very large ammonia carriers (VLACs) for an Oceania-based shipping company.

The VLACs will be delivered by June 2027.

Ammonia is a decarbonized fuel that emits zero carbon dioxide when burned. It is an economically viable means of transporting hydrogen as it can be converted into hydrogen through a simple process. It is also easy to transport and store.

“Ammonia is gaining attention as an alternative fuel that can reduce carbon,” said a Samsung Heavy Industries official. “With the increasing demand for ammonia and a rise in maritime transportation volume, ammonia carrier orders are projected to increase.”

This year, Samsung Heavy Industries secured orders totaling $6.8 billion, achieving 72 percent of its annual order target of $9.5 billion.

The company received orders for 28 vessels ? one floating liquefied natural gas (FLNG) production facility, seven liquefied natural gas (LNG) carriers, 16 dual-fuel methanol-powered containerships, two crude oil carriers, and two VLACs.

By Choi Hyun-jae and Yoon Yeon-hae

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