Korean Shipbuilders Dominate VLAC Orders

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Korean shipbuilders have achieved a remarkable feat by securing all orders for Very Large Ammonia Carriers (VLACs) placed this year. This dominance is attributed to their technological excellence in the shipbuilding industry, says an article published on business korea website.

Summary

  • Korean shipbuilders have secured all orders for Very Large Ammonia Carriers (VLACs) placed this year.
  • According to Clarkson Research, all 15 VLACs ordered globally this year will be constructed by Korean shipbuilders.
  • HD Korea Shipbuilding & Offshore Engineering (KSOE) leads with 11 orders, while Samsung Heavy Industries and Hanwha Ocean have secured two orders each.
  • The surge in VLAC orders is linked to the growing momentum of the hydrogen economy.
  • Ammonia, due to its efficient conversion to hydrogen and storage capabilities, is emerging as a promising hydrogen carrier.
  • Ammonia carriers play a crucial role in transporting hydrogen between continents, with a projected need for up to 200 ammonia carriers by 2035.

Global VLAC Orders Exclusively With Korean Shipbuilders

According to Clarkson Research, a prominent U.K.-based shipbuilding and shipping market analyst, all 15 VLACs ordered globally in the current year will be constructed by Korean shipbuilders. HD Korea Shipbuilding & Offshore Engineering (KSOE) leads with 11 orders, while Samsung Heavy Industries and Hanwha Ocean have secured two orders each. These contracts hail from diverse regions such as Oceania, Latin America, and Europe.

Rising Demand Driven By The Hydrogen Economy

The surge in VLAC orders is closely linked to the growing momentum of the hydrogen economy. As ammonia emerges as a promising hydrogen carrier due to its efficient conversion to hydrogen and storage capabilities, the demand for VLACs is set to rise.

Hydrogen Transportation’s Ammonia Connection

With the hydrogen supply concentrated in regions like Australia, North Africa, and the Middle East, while demand is high in Northeast Asia and Europe, ammonia carriers play a crucial role in transporting hydrogen between continents. Projections suggest a need for up to 200 ammonia carriers by 2035 to facilitate this global hydrogen transportation.

Ammonia As A Green Shipping Solution

In addition to meeting the logistical needs of the hydrogen market, the tightening global shipping regulations are anticipated to drive demand for ammonia. The use of ammonia as a fuel presents environmental benefits, notably in reducing carbon dioxide emissions.

Korean Shipbuilders’ Strategic Moves

Leading the charge in the development of ammonia-powered ships, HD Korea Shipbuilding & Offshore Engineering (KSOE) aims to commercialize these vessels by 2025. Meanwhile, Hanwha Ocean is actively engaged in developing an ammonia-powered gas turbine. With an 80 percent share in the global liquefied natural gas (LNG) carrier market, Korean shipbuilders are committed to sustaining their leadership by investing in research and development (R&D).

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Source: business korea

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