In a significant industry development, Korean shipbuilders have successfully secured all 15 orders for VLACs placed globally this year.
This achievement underscores their technological prowess and positions them favorably in the competitive shipbuilding market, says an article published on business korea website.
Summary
- Korean shipbuilders have secured all 15 orders for Very Large Ammonia Carriers (VLACs) placed globally this year.
- The orders for VLACs have originated from diverse regions, including Oceania, Latin America, and Europe.
- HD Korea Shipbuilding & Offshore Engineering (KSOE) clinched 11 orders, while Samsung Heavy Industries and Hanwha Ocean secured two orders each.
- As the hydrogen economy gains momentum, VLAC orders continue to surge due to the international demand for ammonia carriers.
Global Distribution Of Orders
Orders for VLACs have originated from diverse regions, including Oceania, Latin America, and Europe. Among the notable beneficiaries, HD Korea Shipbuilding & Offshore Engineering (KSOE) clinched 11 orders, while Samsung Heavy Industries and Hanwha Ocean secured two orders each. This global distribution signifies the international demand for ammonia carriers.
Rise Of VLAC Orders In Hydrogen Economy
As the hydrogen economy gains momentum, VLAC orders continue to surge. Ammonia, recognized as a promising hydrogen carrier, is composed of nitrogen and hydrogen. Its easy conversion to hydrogen and efficient storage make it a key player in the evolving landscape of hydrogen transportation.
Projected Growth And Purpose
With a projected need for up to 200 ammonia carriers by 2035, hydrogen transportation becomes crucial for bridging the supply-demand gap between continents. The primary hydrogen supply regions being Australia, North Africa, and the Middle East, while the demand centers are in Northeast Asia and Europe.
Environmental Implications And Regulatory Drivers
The tightening global shipping regulations contribute to the growing demand for ammonia carriers. Leveraging ammonia as a fuel offers the advantage of reducing carbon dioxide emissions, aligning with environmental sustainability goals. This trend is expected to intensify as the shipping industry navigates stricter regulatory frameworks.
Shipbuilders’ Strategic Initiatives
Leading the way in innovation, HD Korea Shipbuilding & Offshore Engineering (KSOE) is actively developing ammonia-powered ships with a targeted commercialization date in 2025. Additionally, Hanwha Ocean is making strides in the development of an ammonia-powered gas turbine, further cementing Korean shipbuilders’ commitment to staying at the forefront of the global market.
Industry Insider Perspective
A shipbuilding industry insider commented on this success, stating, “Korean shipbuilders, enjoying an 80 percent share of the global liquefied natural gas (LNG) carrier market, have secured strong competitiveness in ammonia carriers. Continuous research and development (R&D) efforts are essential to maintaining leadership in the evolving global LNG carrier market.”
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Source: business korea
