HD Hyundai Advances Carbon Neutrality at Sea with Steel and Shipping Companies

HD Hyundai, POSCO, and 4 Shipping Companies Sign Carbon Neutrality Cooperation Agreement

HD Hyundai and steel company POSCO, along with four shipping companies, are forming an eco-friendly global maritime supply chain.

On the 24th, HD Hyundai announced that it signed a 'Carbon Neutrality Cooperation Agreement (MOU) among Shipbuilding, Steel, and Shipping Sectors' with POSCO, H Line Shipping, Korea Marine Transport, Pan Ocean, and Polaris Shipping at the Pangyo Global R&D Center (GRC).

On the 24th, HD Hyundai signed a 'Tripartite Carbon Neutrality Cooperation Agreement in Shipbuilding, Steel, and Shipping' with POSCO, H Line Shipping, Korea Shipping, Pan Ocean, and Polaris Shipping at the Pangyo Global R&D Center. From left: An Jung-ho, President of Pan Ocean; Seo Myeong-deuk, CEO of H Line Shipping; Kim Yong-su, Head of Purchasing and Investment Division at POSCO; Kim Wan-su, Head of Management Planning at HD Hyundai; Kim Man-tae, CEO of Korea Shipping; and Noh Yong-rae, Vice President of Polaris Shipping. Photo by An Jung-ho

Connected through shipbuilding, operation, and raw material transportation, they will conduct demonstration operations of vessels including greenhouse gas monitoring through HD Hyundai’s OceanWise.

OceanWise is an AI technology-based solution for optimizing ship operations and monitoring carbon emissions. It is one of the core visions of 'Ocean Transformation' that HD Hyundai unveiled earlier this year at CES 2023 held in Las Vegas, USA.

According to the agreement, HD Hyundai will integrate OceanWise into POSCO’s fleet management system (PosSIM), the cargo owner, and the four shipping companies will collect and share actual operational data such as operational efficiency, fuel consumption, and carbon emissions of vessels equipped with OceanWise.

HD Hyundai plans to monitor carbon emissions generated during ship operations in real time and, based on this data, enhance OceanWise’s algorithms to jointly promote improvement activities for greenhouse gas reduction together with POSCO and the four shipping companies.

This collaboration is expected to serve as a model case for proactive ESG (Environmental, Social, and Governance) practices that not only improve the supply chain by hyper-connecting all data collected during maritime transportation processes such as ships, ports, and routes but also respond preemptively to strengthened environmental regulations such as the Carbon Intensity Indicator (CII).

Kim Wansu, Head of Management Planning at HD Hyundai, said, "OceanWise is the first vision achievement strategy to realize the ‘Ocean Transformation’ that HD Hyundai announced at CES earlier this year," adding, "We will accelerate the development of future eco-friendly ship solutions based on the accumulated demonstration data through inter-industry cooperation."

Kim Yongsu, Head of Purchasing and Investment at POSCO, said, "Corporate collaboration will become increasingly essential to achieve carbon neutrality goals," and added, "We will fulfill our role as a corporate citizen with an open attitude to strengthen mutual competitiveness through active cooperation."