HD KSOE builds world’s first mid-size ammonia-fueled vessel

South Korea’s HD Korea Shipbuilding & Offshore Engineering (KSOE), an affiliate of HD Hyundai Group, is building the world's first mid-size ammonia-powered ship.

The company on Monday said its dual-fuel ammonia propulsion engine will be installed in two mid-size 45,000-cubic meter liquefied petroleum gas (LPG) carriers ordered in March by the Belgian shipping company Exmar.

To measure 190 meters long, 30.4 wide and 18.8 tall, the two vessels will be built at Hyundai Mipo Dockyard in Ulsan and delivered to the buyer sequentially by May 2026.

Both ships can meet the regulations of the International Maritime Organization of a 40% reduction in CO2 emissions by 2030 from 2008 levels and elimination of 100% of greenhouse gases by 2050.

Each vessel will be designed to carry not only LPG but also ammonia to gain the advantage of being able to use what it transports as fuel.

Because it emits no carbon dioxide when burned, ammonia is attracting major global attention as an alternative fuel thanks to its economics and supply chain stability stemming from ease of transportation and storage.

In 2020, HD KSOE achieved a domestic first by receiving basic certification for its dual-fuel ammonia engine from global marine classification society Lloyd's Register of the UK under the goal of commercial use of vessels powered by the green fuel from 2025.

And in a first for shipbuilding, the company in 2021 developed an ammonia fuel supply system.

Another milestone by HD KSOE, a global leader in eco-friendly ship manufacturing, was its reception of the world's first order for a methanol-powered ultra-large container vessel in August 2021; it was delivered in July last year.

Write to Jae-Fu Kim at hu@hankyung.com