HJ Heavy Industries Secures Order for Methanol Container Ships Worth 316.7 Billion KRW

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] HJ Heavy Industries' shipbuilding division has signed a construction contract with HMM for two 9,000 TEU methanol-powered container ships worth a total of 316.7 billion KRW.

HJ Heavy Industries stated that this is their first successful order for methanol-powered ships, achieved by quickly responding based on the company’s accumulated eco-friendly shipbuilding technology.

The company has been striving to secure market leadership by developing green ship-based container carriers such as LNG dual-fuel powered ships and methanol-powered ships to respond to the International Maritime Organization (IMO)’s 2050 maritime carbon neutrality policy and the resulting decarbonized ship orders.

(From left) Yoo Sang-chul, CEO of HJ Heavy Industries; Cho Seung-hwan, Minister of Oceans and Fisheries; and Kim Kyung-bae, President of HMM, are signing a contract for the order of methanol container ships.

Methanol has recently gained attention as it can reduce nitrogen oxides by 80% and sulfur oxides by 99% compared to conventional petroleum-based fuels, emerging as a next-generation eco-friendly ship fuel capable of carbon neutrality beyond liquefied natural gas (LNG).

As the production volume of its main raw material, natural gas, increases, production costs have decreased, raising shipping companies’ preference for methanol.

In particular, while LNG as a ship fuel requires maintaining, storing, and transferring at an ultra-low temperature of minus 162 degrees Celsius, methanol can be stored and transported at room temperature and normal atmospheric pressure, and fuel supply can be utilized by modifying existing port facilities without large-scale infrastructure investment.

Another major advantage is that methanol naturally decomposes upon release, preventing marine pollution.

HMM, the largest domestic shipping company, has been preparing to secure orders for methanol-powered ships by confirming construction intentions with domestic shipbuilders equipped with technology last year to meet increasingly stringent ship emission regulations and replace its existing container ship fleet with eco-friendly vessels.

In this order, Busan city officials including Mayor Park Hyung-jun and Deputy Mayor for Economic Affairs Lee Seong-gwon, as well as civic groups, supported the order activities in various ways to revitalize the local economy and shipbuilding industry.

The city expects that this successful order will provide relief to the local shipbuilding industry, which has been struggling due to rising raw material prices and reduced workloads, and will serve as a catalyst for the regional economy in terms of both employment and investment.

An HJ Heavy Industries official said, “As the decarbonization era approaches and various ship fuels are applied, shipowners’ demand for eco-friendly ships is increasing. We will lead the market by accumulating shipbuilding technology that can realize methanol-powered ships and carbon-zero eco-friendly vessels.”