South Korean shipbuilding major HD Korea Shipbuilding & Offshore Engineering (HD KSOE) has received an order for the construction of two very large ammonia carriers (VLAC).
The shipbuilding contract, valued at KRW 339.6 billion (about $250 million), was signed with an undisclosed shipowner from Oceania on October 14, 2024, HD KSOE revealed in a stock exchange filing.
As informed, the newbuilds are planned to be constructed at a shipyard in Ulsan and delivered by the end of September 2027.
In 2024 alone, the South Korean shipbuilder bagged many ammonia carrier orders . So far this year, HD KSOE won orders to build a total of 169 vessels worth $18.8 billion, exceeding its annual target of $13.5 billion, Yonhap News Agency reported.
In related news, HD Hyundai Heavy Industries (HD HHI), one of three units that are part of HD KSOE, completed last week the model-based class approval testing for the ‘HiMSEN’ ammonia dual-fuel engine at its Engine Technology Center in Ulsan.
The shipbuilder described the solution as the ‘first’ ammonia engine in the world applied with a high-pressure ammonia direct injection method.
The ammonia engine developed by HD Hyundai Heavy Industries is said to be suitable not only for ammonia carriers but also for marine power generation and propulsion purposes. The company also plans to supply the engine to land-based power generation markets.