South Korea’s Hyundai Steel Launches First LNG Powered Ship in Eco-Friendly Plan

South Korea’s No. 2 steelmaker Hyundai Steel Co. in it’s carbon reduction plan is replacing its fleet of raw material carriers with eco-friendly ships. On Wednesday its first liquefied natural gas (LNG) powered ship, “HL Oceanic,” made its maiden voyage.

LNG Powered HL Oceanic

HL Oceanic was built by Hyundai Samho Heavy Industries in Mokpo, South Jeolla Province. The LNG-powered ship is based exclusively on domestic technology, from ship design to construction, the localization level up to 97 percent of the ship price.

The HL Oceanic is a 180,000 ton-class LNG-powered ship featuring a length of 292 meters, a width of 45 meters and a height of 24.8 meters.

The carrier left the shipyard for Australia and is scheduled to transport 2 million tons of iron ore and coal per year on the route between South Korea and Australia. The HL Oceanic is the first of the two LNG-powered ships, with its sister ship HL Sunny scheduled for delivery in March 2022.

The International Maritime Organization (IMO) is tightening environmental regulations to reduce carbon dioxide and sulfur oxide emissions from ships. LNG-powered ships have increased from 72 in 2014 to 103 in 2016, 145 in 2018 and 220 in 2021. LNG is the most practical eco-friendly fuel at this time.

LNG Emission Reduction

LNG can reduce emissions of sulfur oxide, nitrogen oxide and carbon dioxide by 99 percent, 90 percent, and 30 percent, respectively, compared to conventional high-sulfur vessel oil. It can boost fuel efficiency by more than 30 percent. Countries such as Korea, European countries, China, and Singapore are moving to preempt the LNG propulsion ship market.

Hyundai Steel will replace the remaining raw material carriers with eco-friendly ships. Starting from March 2022, 31 percent of the steelmaker’s raw material carriers will be loaded with desulfurization devices, and 15 percent will be replaced with LNG-powered ships.

Source: Business Korea

From The TradersCommunity US Research Desk