Hyundai Steel Uses Eco-Friendly Ships for Raw Material Transport

Hyundai Steel's first LNG-powered vessel for raw material transportation, 'HL Oceanic'

[Asia Economy Reporter Choi Dae-yeol] Hyundai Steel announced on the 24th that it will use liquefied natural gas (LNG) powered ships when importing iron ore and other materials from overseas. LNG-powered ships are considered eco-friendly vessels due to their low emissions.

The HL Oceanic, delivered from Hyundai Samho Heavy Industries, departed from the Mokpo shipyard on the same day and will transport 2 million tons of iron ore and coal annually between South Korea and Australia. This 180,000-ton class ship uses LNG as fuel, reducing sulfur oxides by 99% compared to ships using conventional high-sulfur fuel oil. The company explained that nitrogen oxides and carbon dioxide emissions are also reduced by 90% and 30%, respectively, while fuel efficiency is improved by more than 30%.

The LNG fuel tanks and fuel supply systems, which had been highly dependent on overseas sources, were also domestically produced for this ship. The level of domestic production from design to manufacturing reaches 97%. As global demand for LNG-powered ships increases to comply with environmental regulations, Hyundai Steel has been negotiating since 2019 with the Ministry of Oceans and Fisheries, Korea Gas Corporation, and H Line Shipping to introduce LNG fuel-powered vessels. In March next year, the twin ship HL Sunny will be deployed. In addition to the two LNG-powered ships, Hyundai Steel plans to convert the remaining raw material dedicated ships into eco-friendly vessels through consultations with shipping and shipbuilding companies.