In the midst of the global economic downturn, Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering, DSME) hopes to realize profitability by undertaking high-value-added vessels through its order- selection strategy.
In the first half of this year, Hanwha Ocean received orders for a total of 26 new vessels valued at $5.07 billion. In terms of vessel type, it includes 16 liquefied natural gas (LNG) carriers, 2 very large liquid ammonia carriers (VLAC), 1 very large liquefied petroleum gas carrier (VLGC), and 7 very large crude oil carriers (VLCC).
In Hanwha Ocean’s merchant vessel order book, LNG carriers, are the most prominent. Orders for 16 new LNG carriers came from the second phase of QatarEnergy’s “ Hundred Ships Program” and from ADNOC L&S, the shipping and maritime logistics subsidiary of Abu Dhabi National Oil Company (ADNOC), in the amounts of 12 and 4, respectively.
According to Clarkson’s data as of the end of August 2024, the number of LNG carriers in operation in the global shipping fleet was 707, of which 180 were built by Hanwha Ocean, with a market share of about 25%, and its delivery volume ranked first in the world.
Back in October 2023, Hanwha Ocean announced that it would build four large LNG carriers simultaneously at its Geoje Shipyard No. 1 dock, and construction of LNG carriers would also begin in 2024 at its No. 2 dock. Hanwha Ocean aims to break the company’s annual production capacity for LNG carriers and has set an annual delivery target of 22 vessels in 2024 and 25 in 2025. In 2018, the then DSME set a record of building 19 LNG carriers per year, which it holds to this day.
The Korean industry attributes Hanwha Ocean’s success in the LNG carrier sector to its environmentally friendly marine technology. In 2023, Hanwha Ocean developed a conceptual design for an ammonia-fueled 174,000 cbm LNG carrier that received Approval-in-Principle (AiP) from the American Bureau of Shipping (ABS).
The LNG carrier, which can run on ammonia/natural gas fuel alone or in parallel, is designed to be smaller than a diesel engine and utilizes Exhaust Gas Waste Heat Recovery System of Hanwha Power System. The system meets NOx emission requirements regardless of fuel type, eliminates the need for a selective catalytic reduction (SCR) system, and significantly reduces methane leakage. If only ammonia is used as fuel, no carbon gas will be emitted, making it the world’s first zero-carbon emission LNG carrier.
In response to the International Maritime Organization’s (IMO) environmental regulations, Hanwha Ocean is providing shipowners with environmentally friendly solutions to reduce carbon emissions of vessels. The company has introduced smart ship technologies such as the Carbon Intensity Index (CII) for vessels, the Storage Generator Motor (SGM) system, and air lubrication systems.