HD Korea Shipbuilding & Offshore Engineering Co. (KSOE), an intermediate holding company for shipbuilding within South Korea’s HD Hyundai Group, won the world’s first order for medium-sized ammonia-powered ships, a game changer in the field of eco-friendly fuel ships that emit no carbon during the combustion process. The delivery of ammonia-fueled carriers is expected to accelerate the decarbonization movement in the shipbuilding and shipping industry.

KSOE announced Monday that it will apply ammonia dual-fuel engines to two 45,000 cubic meter, mid-sized liquefied petroleum gas (LPG) carriers ordered by Belgian shipping company EXMAR NV in March 2023.

The LPG carriers, each measuring 190 meters in length, 30.4 meters in width, and 18.8 meters in height, will be built at Hyundai Mipo Dockyard in Ulsan and delivered to the shipping company by May 2026. According to HD Hyundai Co., the LPG carriers will be equipped with an engine designed by China’s Winterthur Gas & Diesel Ltd. (WinGD), an industry leader in large marine engines, along with Germany‘s MAN Energy Solutions SE.

Ammonia is a decarbonized fuel that emits zero carbon dioxide when burned, as well as being easy to transport and store. Although concerns have been raised over the ships’ safety, including the potential for fuel tank corrosion and the risk of explosions, HD Hyundai says that WinGD’s dual-fuel engine has technically addressed these issues.

Once HD Hyundai successfully delivers the ammonia-powered vessels, the shipbuilding industry’s move toward decarbonization is likely to gain further momentum, helping to meet the International Maritime Organization (IMO) mandate to reduce greenhouse gas emissions by 40 percent from 2008 levels by 2030, and is also in line with the IMO’s blueprint to become net-zero by 2050.

“Ammonia-fueled ships will be a game changer in the green trend within the shipbuilding and shipping industry as they are powered by carbon-free engines,” a shipbuilding industry official said.

By Choi Hyun-jae and Choi Jieun

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]