HD Hyundai Heavy Industries gets early jump on green vessel market

South Korea's HD Hyundai Heavy Industries Co. by late next year will develop mid-size engines for ammonia-powered ships using its own technology and know-how.

This is part of its strategy to gain an early advantage in the market for these vessels, which have attracted the global limelight as next-generation eco-friendly seacraft.

Industry sources on Tuesday said that in the first half of next year, the company will receive approval for ammonia-powered engine types from classification societies abroad. Such certification will include the manufacturing of the engine as part of a ship's design.

The company will develop, produce and deliver such engines by the end of next year. Its development of large-size engines of this type is being done in cooperation with MAN Energy Solutions of Germany and Winterthur Gas & Diesel, aka WinGD, of China.

Large engines account for 10% of a ship's manufacturing cost and medium ones 5%. Because ammonia requires no advanced tank technology, vessel construction will face no difficulty once the engine is developed.

HD Hyundai Heavy Industries aims to become the world's first shipbuilder to land an order for an ammonia-powered vessel for delivery by 2025. In June last year, it signed a memorandum of understanding with Singaporean shipping company EPS to develop ammonia-powered tankers.

Considering the delivery schedule for such engines, the South Korean company is expected to receive orders for such vessels as early as this year.

Write to Hyung-Kyu Kim at khk@hankyung.com