Prioritize LNG and Hybrid Applications to Convert 528 Eco-Friendly Ships by 2030

Ministry of Oceans and Fisheries & Ministry of Trade, Industry and Energy Announce '1st Basic Plan for Development and Distribution of Eco-Friendly Ships (2021~2030)'

Conversion of 388 Public Vessels and 140 Private Vessels to Eco-Friendly Ships
Projected Creation of KRW 4.9 Trillion in Sales, KRW 11 Trillion in Production Inducement, and 40,000 Jobs by 2030

Securing Emission Reduction Technology to Cut Greenhouse Gas Emissions by Over 70% Compared to Conventional Fuel Ships
Construction of More Than 10 Prototype Ships Applying New Eco-Friendly Technologies Planned

[Sejong=Asia Economy Reporter Joo Sang-don] The government has decided to convert 528 aging public and private vessels into eco-friendly ships by 2030. It will also develop reduction technologies capable of cutting greenhouse gas emissions by more than 70%.

The Ministry of Oceans and Fisheries and the Ministry of Trade, Industry and Energy announced on the 23rd at the Government Complex Sejong, during the '23rd Emergency Economic Central Countermeasures Headquarters Meeting' chaired by Deputy Prime Minister Hong Nam-ki and the '7th Korean New Deal Ministerial Meeting,' that they have finalized the '1st Basic Plan for Eco-Friendly Ships' containing these measures.

In response to the International Maritime Organization (IMO)'s strengthened greenhouse gas regulations and the European Union (EU)'s planned implementation of the Emissions Trading System (EU-ETS), the global shipbuilding and shipping markets are transitioning from conventional fuel ships to eco-friendly ship systems. Accordingly, the Korean government has actively responded to marine environmental regulations and the new eco-friendly ship market by enacting the 'Act on the Development and Promotion of Environmentally Friendly Ships' in January this year, followed by the establishment of this basic plan for eco-friendly ships.

First, the government will promote the spread of eco-friendly ships. Commercialized technologies such as LNG and hybrid will be prioritized, starting with the public sector to proactively convert to eco-friendly ships and then expanding to the private sector.

A total of 388 public vessels will be converted to eco-friendly ships by 2030, with 199 aging public vessels being replaced by new builds and 189 vessels under 10 years old retrofitted with particulate matter reduction devices (DPF). For private vessels, support will be provided to convert a total of 140 vessels, including 58 domestic vessels such as ferries and passenger ships, and 82 foreign vessels such as cargo ships, into eco-friendly ships. By converting 528 vessels, which account for 15% of the total 3,542 targeted vessels, the government expects to generate KRW 4.9 trillion in sales, KRW 11 trillion in production inducement, and create approximately 40,000 jobs.

Development of reduction technologies capable of cutting greenhouse gas emissions by over 70% by 2030 will also be pursued. To this end, the government plans to support systematic and comprehensive technology development for eco-friendly ships and equipment technologies, progressing from 'localization and advancement of core equipment technologies for LNG (liquefied natural gas), electric, and hybrid → low-carbon ship technologies such as mixed fuels → zero-carbon ship technologies such as hydrogen and ammonia.'

Currently commercialized technologies such as LNG, electric, and hybrid propulsion will enhance cost and technological competitiveness through the development of localization and advancement of core equipment technologies. Additionally, as an intermediate technology for future zero-carbon fuel development, low-carbon technologies will be developed, including mixed fuel propulsion technology that uses a blend of conventional and zero-carbon fuels, energy efficiency improvement technologies that reduce greenhouse gases through friction resistance reduction, lightweighting, and high-efficiency propulsion devices. For zero-carbon ships, which are in the early stages, the strategy is to secure zero-carbon ship technologies early by developing core equipment technologies such as hydrogen and ammonia fuel cells, fuel storage tanks, and fuel supply and propulsion systems. To this end, the government plans to promote the 'Eco-Friendly Ship Full Lifecycle Innovation Technology Development Project (2022?2031, KRW 950 billion scale)' (preliminary feasibility study underway in Q4). The government expects to secure technologies capable of reducing greenhouse gas emissions by more than 70% compared to conventional fuel ships by 2030 through this initiative.

The government will also gradually expand eco-friendly fuel supply infrastructure such as LNG and electricity to promote the spread of eco-friendly ships. LNG bunkering ship operations and the construction of onshore terminals will diversify LNG fuel supply methods, and onshore power supply systems (AMP) for berthed vessels will be utilized as high-speed charging facilities for small electric and hybrid ships to expand fuel supply infrastructure. Furthermore, to create an ecosystem leading the eco-friendly ship market, national certification systems for eco-friendly ships and equipment will be operated, providing additional points during business selection and supporting international standardization of certified technologies. Alongside this, a support center will be established to analyze and verify greenhouse gas and air pollutant emissions based on actual eco-friendly ship operation data, and to enable remote diagnosis and predictive maintenance of ships, thereby securing a foundation for safe operation and management.

The government expects the basic plan to achieve KRW 1.3 trillion in environmental improvement effects by 2030. Through the conversion to eco-friendly ships, approximately 400,000 tons of greenhouse gases (about 3% compared to 11.81 million tons in 2017) and about 3,000 tons of particulate matter (about 18% compared to 18,936 tons in 2017), in addition to existing particulate matter reduction measures (about 7,500 tons by 2025), are expected to be reduced.

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