HD KSOE Sails Towards Greener Future With $328.6 Million VLAC Deal

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  • In a move that underscores the growing significance of ammonia transportation, HD Korea Shipbuilding & Offshore Engineering (HD KSOE) has secured a substantial contract worth $328.6 million for the construction of two Very Large Ammonia Carriers (VLACs).
  • The agreement involves building the specialized ammonia carriers for an unnamed European shipping company. HD Hyundai Samho, a subsidiary of HD KSOE, will undertake construction, with deliveries anticipated to be completed by September 2028.

This latest contract further strengthens HD KSOE’s already robust order book. The company has secured a total of 118 vessels (including one offshore facility) with a cumulative value of $12.59 billion. This signifies an impressive achievement of 93.2% of their annual target of $13.5 billion, highlighting their resilience in a challenging economic climate.

Diversified Expertise Caters to Global Needs

HD KSOE demonstrates its versatility by catering to the diverse requirements of the global shipping industry. Their current order book reflects this commitment, encompassing a wide range of vessel types such as Liquefied Natural Gas (LNG) carriers, Petrochemical Product Carriers, LPG/Ammonia carriers, and various specialized vessels.

VLAC Order Signals Shift Towards Sustainable Shipping

The significance of the VLAC contract lies in its alignment with the shipping industry’s growing focus on eco-friendly solutions. Ammonia, a critical industrial chemical used in fertilizers and cleaning products, is also being explored as a potential future fuel due to its zero-carbon emissions when burned. This aligns perfectly with international environmental regulations and the industry’s push for greener operations.

HD KSOE’s success in securing this VLAC contract positions them as a frontrunner in the evolving ammonia transportation market. This deal signifies their commitment to innovation and their role in facilitating the maritime industry’s transition towards a more sustainable future.

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Source: Port News