On December 26, Samsung Heavy Industries announced that it has signed a construction contract with an Oceania-based shipowner for two very large liquid ammonia carriers (VLACs), with a total order value of KRW 308 billion, which are expected to be delivered to the owner by June 2027 one after another.
It is now widely recognized that ammonia is one of the fuels with a wide range of applications on the road to a green and low-carbon transformation of the shipping industry. Unlike traditional marine fuels, ammonia emits no carbon dioxide when burned, helping to reduce greenhouse gas emissions and combat global climate change, and it can be produced using renewable energy sources such as wind or solar power, making it a versatile and environmentally friendly energy carrier.
“Ammonia is attracting attention as an alternative fuel that can reduce greenhouse gas emissions. Moreover, ammonia can be converted into hydrogen by a simple process and will become the most economical way to transport hydrogen. This is expected to stimulate the demand for ammonia in the future, leading to a rise in the volume of marine transportation and thus gradually expanding the order size for ammonia carriers”, said a Samsung Heavy Industries official.
Including the latest order, Samsung Heavy Industries (SHI) has received 28 newbuilding orders worth $6.8 billion this year, which is 72% of its annual target of $9.5 billion.
By ship type, these include 16 methanol dual-fuel containerships, seven liquefied natural gas (LNG) carriers, two crude oil carriers, two VLACs, and one FLNG.The 16 methanol dual-fuel containerships were ordered by Taiwan, China’s Evergreen Marine, with an order value of KRW 3.9593 trillion (approx. $3.13 billion), making this the largest single-vessel contract Samsung Heavy Industries has ever signed. And It sets the company’s record order intake set in June 2022 (12 174,000 m3 LNG carriers worth KRW 3.33 trillion).