Eco-friendly Facilities to Prevent Carbon Emissions and Minimize LNG Loss
Shipping Companies Actively Consider Installation Amid Stricter Greenhouse Gas Regulations
Over 100 Ships Without Re-liquefaction Facilities... Market Size $700 Million
HD Hyundai Marine Solutions is pioneering the 'LNG Carrier Re-liquefaction System' sector, regarded as a blue ocean in the eco-friendly ship retrofit market.
On the 22nd, HD Hyundai Marine Solutions announced that it recently signed a 'low-carbon ship retrofit contract' with U.S. energy company Chevron, including the installation of re-liquefaction systems on two LNG carriers.
Including this contract, HD Hyundai Marine Solutions has achieved a cumulative order amount of 100 million USD (approximately 130 billion KRW). Following the first order in June last year from a Norwegian shipping company for the installation of re-liquefaction systems on five LNG carriers, the company secured contracts for a total of eight vessels by February this year.
The re-liquefaction system is a device that liquefies gas naturally vaporized on operating LNG carriers and returns it to the cargo tanks. It is an eco-friendly system that minimizes LNG loss and prevents carbon emissions.
Re-liquefaction systems began to be actively installed on LNG carriers from the mid-2010s. Most LNG carriers built before then do not have re-liquefaction systems. As the International Maritime Organization (IMO) tightens greenhouse gas emission regulations, shipping companies are actively considering installing re-liquefaction systems on operating LNG carriers.
Among recently built LNG carriers with relatively low vessel age, about 100 vessels lack re-liquefaction systems, and the market size for installing these systems on such vessels is estimated to reach 700 million USD (approximately 930 billion KRW). This is why the installation of re-liquefaction systems is attracting attention as a new blue ocean in the eco-friendly ship retrofit market.
HD Hyundai Marine & Solutions and Chevron have signed a "Low-Carbon Ship Retrofit Contract" for the 160,000 cubic meter LNG carrier Asia Energy. [Photo by HD Hyundai Marine & Solutions]
HD Hyundai Marine Solutions’ recent 'low-carbon ship retrofit contract' with Chevron also includes an air lubrication system that sprays compressed air on the hull bottom surface to reduce frictional resistance, and the application of a 4-stage compressor to improve fuel supply efficiency, thereby enhancing the ship’s energy efficiency and drastically reducing carbon emissions.
Barbara Pickering, President of Chevron, stated, "LNG will be a key component in the global energy transition," and added, "We will continue to invest in the LNG fleet."
Lee Ki-dong, CEO of HD Hyundai Marine Solutions, said, "We are currently negotiating re-liquefaction system installation projects with multiple clients," and added, "We will continue to provide various solutions to secure a blue ocean in the eco-friendly ship retrofit market."
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