A methanol-powered vessel built by Hyundai Mipo Dockyard Co. is seen in this photo provided by the shipbuilder.
SEOUL, May 29 (Korea Bizwire) — In the area of methanol-powered ships, which have emerged as a game changer in the shipbuilding industry, competition is heating up between South Korea and China.
HD Hyundai Heavy Industries Co. held a keel-laying ceremony last week to place the first block of a methanol dual fuel container ship inside the dry dock.
This ship, scheduled for delivery in January next year, is a 16,200 twenty-foot equivalent unit (TEU) mega-sized container ship ordered by Maersk Line Ltd. of Denmark.
Previously, Maersk Line placed orders for eighteen methanol-propelled vessels from HD Hyundai Heavy and one from Hyundai Mipo Dockyard Co.
Methanol-powered ships reduce sulfur oxides and nitrogen oxides emissions by 99 percent and 80 percent, respectively, compared to those running on existing bunker C oil.
Liquid natural gas (LNG)-powered ships require large cargo holds to keep LNG in a liquid state below -163 degrees Celsius.
In contrast, methanol can be maintained in a liquid state even at room temperature, eliminating the need for such facilities.
An employee works at a shipyard in this file photo. (Yonhap)
The problem is that Chinese shipbuilders are aggressively joining the race by offering prices approximately 20 percent lower than their Korean rivals.
So far, a total of 81 methanol-powered ships have been ordered worldwide, with Korea securing orders for 45 and China for 36.
France’s CMA CGM ordered six 15,000 TEU methanol-fueled container ships from China’s Dalian Shipbuilding Industry Co. in August last year.
Maersk Line recently signed a Letter of Intent (LOI) with China’s Yangzijiang Shipbuilding Ltd. for the construction of eight 8,000 TEU methanol-powered container ships.
In particular, amidst the booming shipbuilding industry, Chinese shipyards are promoting shorter delivery periods as a competitive advantage, considering that the docks of Korean shipyards are filled with enough orders to keep them busy for approximately three years.
J. S. Shin (js_shin@koreabizwire.com)
