HANJIN HEAVY INDUSTRIES

- Won the contract to build eco-friendly methanol-powered container vessels of 9000TEU for the first time in Korea.
- ‘Bright smile’ of shipbuilding equipment industry in Busan. Expectation on expansion of eco-friendly vessel market of the next generation.

- Shipbuilding Contract Signing Ceremony

(From left) CEO Yoo Sang-cheol of HJSC, Minister Cho Seung-hwan of Oceans and Fisheries, President Kim Kyung-bae of HMM

Shipbuilding business of HJSC(CEO Yoo Sang-cheol) reassured its peerless competitiveness in eco-friendly container vessel industry for next generation by executing the shipbuilding contract with HMM for two 9000TEU container vessels powered by methanol worthy of total 316.7 Billion KRW. 

It’s the first contract of HJSC to build the methanol-powered vessels. This contract is considered as the fruit of HJSC’s preemptive actions on the basis of the its eco-friendly shipbuilding technologies accumulated up to now. 

For coping with the 2050 ocean carbon neutrality policy of IMO(International Maritime Organization) and contractor’s request for carbon-free ships according to the policy, HJSC ceaselessly endeavored to predominate the market as focusing on the development of green ship-based container vessels including methanol-powered vessels and LNG dual-powered vessels.

Methanol is emerging as the eco-fuel for next generation ships realizing carbon neutrality beyond LNG which is very popular at present because it can reduce nitrogen oxide by 80% and sulfur oxide by 99% as compared to existing petroleum-based fuel. Since natural gas production, the main material, is increasing and the unit cost of production is lowered, the preference by ship owners on methanol has been increasing.

In particular, while LNG should be kept, stored and transported at extremely low temperature of 162℃ below zero to be used as ship fuel, methanol can be stored or transported at room temperature and general atmospheric pressure. Moreover, methanol can be fuelled by remodelling the existing harbor facility without significant infrastructure investment. Another merit is that methanol doesn’t pollute the ocean as being naturally decomposed after discharge.

HMM, the biggest national shipping enterprise in Korea, planned the methanol-powered vessel project last year including sounding domestic shipbuilders with technologies about willingness to build methanol-powered vessels in order to satisfy the ship emission regulations which has been gradually intensified and replace the existing fleet of container vessels to the fleet of eco-vessels.

With this achievement, HJSC reconfirmed its competitiveness in container vessels as verifying its eco-vessel technologies never falling behind the leading shipbuilders in the world. The contract will be the timely rain even for local economy and shipbuilding equipment industry in Busan by ordering a wide range of materials and equipment required for shipbuilding.

Busan Metropolitan City and local communities claiming for more jobs in shipbuilding companies in Busan rejoice the contract they waited for a long time. Mayor Bak Hyeong-jun and officials of Busan Metropolitan City including deputy mayor Yi Seong-gwon of Economy as well as civil groups never spare any support including help to win the contract in various ways. Busan Metropolitan Government expects that the contract will make local shipbuilding industry relieved from difficulties they suffered due to increasing cost of raw materials and reducing jobs and will activate the local economy in both employment and investment.

An official of HJSC said, “the eco-vessel demand of ship owners has been increasing as a variety of ship fuels is applied in the carbon-free times. HJSC will lead the market by accumulating the eco-shipbuilding technologies enabling carbon-free vessels including methanol-powered vessels.”