South Korean shipbuilding giant HD Korea Shipbuilding & Offshore Engineering (HD KSOE) has secured a contract for the construction of two very large ammonia carriers (VLACs). The deal, valued at KRW 339.6 billion (approximately $250 million), was finalized with an undisclosed shipowner from Oceania on October 14, 2024, according to a recent stock exchange filing by HD KSOE. The new vessels are set to be built at the company’s Ulsan shipyard, with delivery scheduled for the end of September 2027.

This latest order adds to a successful year for HD KSOE, which has already received multiple contracts for ammonia carriers in 2024. To date, the shipbuilder has won orders for a total of 169 vessels, amounting to $18.8 billion. This achievement has allowed them to surpass their annual target of $13.5 billion, as reported by Yonhap News Agency.

In related developments, HD Hyundai Heavy Industries (HD HHI), one of the three units that comprise HD KSOE, recently completed model-based class approval testing for its innovative ‘HiMSEN’ ammonia dual-fuel engine. This testing took place at the Engine Technology Center in Ulsan. HD HHI claims that this is the world’s first ammonia engine utilizing a high-pressure ammonia direct injection method. The engine is designed to be versatile, suitable not only for ammonia carriers but also for marine power generation and propulsion applications. Furthermore, the company aims to introduce this technology to the land-based power generation market.

HD KSOE’s continued focus on ammonia carriers and the development of dual-fuel engine technology positions it at the forefront of the maritime industry’s shift towards more sustainable fuel options. As the demand for ammonia as a cleaner alternative grows, HD KSOE’s investments in innovative technologies and infrastructure will likely enhance its competitive edge in the global shipbuilding market. With a robust order book and a commitment to technological advancement, the company is well-positioned for future growth.

The decision to construct these ammonia carriers reflects a broader trend in the maritime sector, as shipping companies and shipbuilders increasingly prioritize eco-friendly solutions. Ammonia is being recognized for its potential as a zero-carbon fuel, aligning with global efforts to reduce greenhouse gas emissions and transition to more sustainable energy sources. HD KSOE’s proactive approach in this area, along with its recent contracts, underscores the company’s ambition to lead in the development of environmentally friendly marine technologies.

In summary, HD KSOE’s recent order for two VLACs represents a significant milestone in its ongoing commitment to sustainable shipping solutions. With an impressive order portfolio and advancements in ammonia engine technology, the company is poised to play a crucial role in shaping the future of the maritime industry.