HD Hyundai to supply shaft generator for Middle Eastern firm
Sang Hoon Sung
Sep 23, 2024 (Gmt+09:00)
South Korea's HD Hyundai Marine Solution Co. secured a $37 million contract to supply shaft generator systems for 17 liquefied natural gas (LNG) carriers operated by a Middle Eastern shipping company, the company announced on Sunday.
The systems will be delivered in stages until 2028.
Shaft generator systems generate electricity by harnessing part of the rotational power from a ship’s main propulsion engine. They are more fuel-efficient than traditional medium-sized engines, helping to lower fuel costs.
The deal is notable as the Middle Eastern shipping company is known for its conservative approach to equipment selection and strict quality standards.
HD Hyundai Marine Solutions received high marks for integrating key components, such as the generator variable frequency drive (VFD), and on-site support capabilities.
Shaft generator systems are becoming the standard for large LNG and liquefied petroleum gas (LPG) carriers. The market is expected to overgrow, especially after 2030, when stricter carbon emissions regulations.
According to market research firm Business Research Insights, the shaft generator system market is projected to grow from $245.81 million in 2022 to $365.8 million by 2028, at a compound annual growth rate (CAGR) of 6.85%.