POSCO Completes Preparations for Launching Eco-Friendly LNG-Powered Ship!

The world's first large LNG-powered bulk carrier, the HL Green, is undergoing sea trials. The oval-shaped tank, surrounded by yellow structures, is the LNG fuel tank made with POSCO 9% nickel steel applied for the first time.

[Asia Economy Reporter Hwang Yoon-joo] POSCO has unveiled two of the world's first 180,000-ton liquefied natural gas (LNG)-powered large bulk carriers.

On the 20th, according to POSCO, along with a traditional axe ceremony cutting the ship's mooring rope with a hand axe, the two world-first LNG-powered large bulk carriers were named 'HL Eco' and 'HL Green.' The LNG fuel tanks, twice the size, used 9% nickel steel domestically produced by POSCO for the first time, and 42,000 tons of POSCO heavy plates were used for the hull. These ships will transport iron ore and coal between South Korea and Australia to steel mills.

Last year, global LNG demand increased by 12.5% year-on-year to 359 million tons, and the US oil and gas company Shell forecasts that LNG demand will rise to 700 million tons by 2040. The key driver of LNG demand is 'eco-friendliness.' Especially from this year, ships that do not comply with the regulations of the International Maritime Organization (IMO), a United Nations agency, will not be allowed to enter ports of member countries. Just as electric vehicles and hydrogen fuel cell vehicles are gaining attention in the automotive industry, eco-friendly ships such as LNG-powered vessels are attracting attention in the shipbuilding industry.

According to the 'Competitive Status and Future Outlook of Eco-friendly Shipbuilding Sector Expected to Concentrate on New Orders' report released by POSCO Research Institute in August this year, the scale of LNG-powered ship construction is expected to grow from 20 trillion won in 2020 to 130 trillion won, more than six times in five years. The number of ships to be ordered by 2029 is expected to be 2,500 to 3,000, and it is also forecasted that by 2030, 60% of domestically built ships will be LNG-powered vessels.

LNG is an eco-friendly fuel that reduces emissions by 99% for sulfur oxides, 90% for nitrogen oxides, and 30% for carbon dioxide compared to conventional fuels. It offers fuel efficiency comparable to bunker C oil and is also inexpensive. Especially this year, due to expanded supply and reduced energy demand caused by COVID-19, LNG prices temporarily became cheaper than coal. Based on the Northeast Asia price indicator JKM (Japan Korea Marker), at the end of March, the price of natural gas per 1 MMBTU (Million British Thermal Unit) was $2.43, which was lower than the price of Australian coal with the same calorific value at $2.56.

POSCO explained, "With 'IMO2020' starting this year, if carbon emissions are reduced to 70% of 2008 levels by 2050, hydrogen will replace existing fossil fuels, and LNG is seen as a transitional fuel," adding, "Until that day comes, there seems to be no disagreement that LNG-powered ships will represent eco-friendly vessels for at least the next 10 to 30 years."

This content was produced with the assistance of AI translation services.