Korea National Oil Corporation and Lloyd's Register Sign
MoU for Joint Development of 'Ammonia-FSRU'
[Asia Economy Reporter Choi Seoyoon] Hyundai Heavy Industries Group, together with Korea National Oil Corporation and others, has embarked on the development of an ammonia maritime supply base, one of the next-generation eco-friendly energy sources gaining attention.
Hyundai Heavy Industries Group’s Korea Shipbuilding & Offshore Engineering and Hyundai Heavy Industries recently announced on the 7th that they signed a ‘Joint Development Agreement for Ammonia-FSRU (Floating Storage Re-gasification Unit)’ with Korea National Oil Corporation and Lloyd’s Register at the Korea National Oil Corporation headquarters in Ulsan.
The signing ceremony was attended by Jeon Seungho, Vice President and Head of Technology Division at Hyundai Heavy Industries, Park Sangmin, Executive Director of Korea Shipbuilding & Offshore Engineering, Ahn Beomhee, Head of ESG Office at Korea National Oil Corporation, and Park Sunggu, Regional Director for Far East Asia at Lloyd’s Register.
The Ammonia-FSRU is a vessel that stores liquefied ammonia transported from production sites and re-gasifies it to supply to onshore demand points. FSRUs generally berth at coastal mooring facilities and operate similarly to onshore terminals, and when necessary, can also transport cargo directly by sea.
Ammonia is an eco-friendly fuel that does not emit carbon dioxide during combustion. When co-fired with coal, it can reduce carbon emissions while maintaining power output, leading to increased demand for its use as an energy source in coal-fired power plants.
Additionally, ammonia is gaining attention as a carrier for storing and transporting hydrogen. Ammonia is a compound of hydrogen and nitrogen, with a liquefaction temperature of minus 33°C, which is significantly higher than hydrogen’s liquefaction temperature of minus 253°C. Moreover, when liquefied, ammonia has 1.7 times the hydrogen storage density of liquefied hydrogen in the same volume, making it suitable for large-scale long-distance hydrogen transport and storage.
Although no Ammonia-FSRU has been constructed worldwide yet, it is expected to have a market lead effect in the future due to its advantages over onshore terminals, such as lower construction costs, shorter manufacturing periods, and no need for large land acquisition.
Under this agreement, Hyundai Heavy Industries Group will develop the core equipment, the re-gasification system, and perform the basic design of the Ammonia-FSRU with specifications suitable for the domestic clean ammonia receiving and storage infrastructure project promoted by Korea National Oil Corporation, while Lloyd’s Register will review and approve the design.
Vice President Jeon said, "This joint development of the Ammonia-FSRU is significant as it prepares leading technology in the future eco-friendly energy sector," adding, "We will continuously cooperate with Korea National Oil Corporation and Lloyd’s Register to strive for market leadership in the Ammonia-FSRU sector."
Head Ahn stated, "Through cooperation with Hyundai Heavy Industries Group, the world’s first development of an Ammonia-FSRU has become possible," and added, "We will take the lead in providing key solutions for activating the hydrogen economy through mutual cooperation."
Director Park said, "As the transition to eco-friendly energy accelerates, this joint development will attract market attention as it technically guarantees an important supply infrastructure in the ammonia value chain," and added, "I am very honored that Lloyd’s Register is participating in this technical verification."
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