Hanwha Ocean wins world's largest ammonia carriers order

South Korea's Hanwha Ocean Co. secured 656.2 billion won ($496 million) worth of four very large ammonia carriers (VLAC) order from the Greek shipping company Naftomar, the shipbuilder said on Tuesday.

The vessels, which will be constructed at Hanwha Ocean's Geoje shipyard, are scheduled to be delivered to the shipowner by the first half of 2027.

The VLACs, which can transport 93,000 cubic meters of ammonia, will be the largest ammonia carriers ordered to date. They will incorporate eco-friendly technologies such as shaft generator motor systems and can potentially be converted to ammonia propulsion in the future.

Ammonia is considered an eco-friendly fuel as it does not emit carbon dioxide when burned. It can be easily converted into hydrogen, making it an economical means of transporting hydrogen.

Hanwha Ocean received Approval in Principle (AIP) for an 86,000-cubic-meter class ammonia carrier from Bureau Veritas (BV) of France in September 2022 and from Lloyd's Register (LR) of the UK in October 2022.

Following this contract with Naftomar, a specialist in the transportation of liquefied petroleum gas (LPG) and ammonia, Hanwha Ocean plans to strengthen its position in the eco-friendly fuel carrier construction market.

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