This image provided by HD Korea Shipbuilding & Offshore Engineering Co. on Jan. 24, 2024, shows an artist’s rendition of a very large ammonia carrier. (Image courtesy of Yonhap)
SEOUL, Jan. 24 (Korea Bizwire) — High value-added ammonia carries have emerged as a new marketplace for South Korean shipbuilders, industry data showed Wednesday, amid a recent surge in global orders in line with a decarbonization trend.
HD Korea Shipbuilding & Offshore Engineering Co. and two smaller rivals in South Korea have clinched all 15 global orders for very large ammonia carriers so far this year, according to the data by global market researcher Clarkson Research Service.
Industry leader HD Korea Shipbuilding has won orders to construct 11 ammonia carriers, with Hanwha Ocean Co., formerly Daewoo Shipbuilding & Marine Engineering Co. (DSME), winning orders for two vessels.
Samsung Heavy Industries Co., the shipbuilding arm of South Korea’s top conglomerate, Samsung Group, also has obtained orders to build two ammonia carriers.
Industry watchers said global orders for ammonia carriers are gaining further momentum this year, given last year’s numbers.
For all of 2023, 21 global orders for ammonia carriers were placed, with the three South Korean shipyards bagging 15 of them. The remainder went to Chinese shipbuilders.
HD Korea Shipbuilding won eight orders, followed by Hanwha Ocean with five and Samsung Heavy with two.
Analysts said ammonia carriers are serving as a new specialized market segment for South Korean shipbuilders, together with liquefied natural gas (LNG) carriers, for which they account for more than 80 percent of global orders.
In particular, South Korean shipyards’ dominance of the global market for ammonia carriers is widely seen as a positive sign for them as global orders for LNG carriers are forecast to drop sharply this year.
“It is very positive for South Korean shipbuilders to be competitive in the market segment for high value-added vessels, such as ammonia and LNG carriers,” an industry source said.
Amid a global carbon-neutrality trend, ammonia has been gaining popularity as a carbon-free fuel. It is also used as a means of transporting and storing hydrogen, another eco-friendly fuel.
Market watchers expect global orders for ammonia carriers to reach up to 200 by 2035 in light of the long distance between hydrogen suppliers — Australia, North Africa and the Middle East — and its buyers — Northeast Asia and Europe.
(Yonhap)
