Hyundai Steel Completes Development of Ultra-Low Temperature Thick Plates... Targets Eco-Friendly LNG Related Markets

[Asia Economy Reporter Hwang Yoon-joo] Hyundai Steel has newly developed a steel grade that can withstand cryogenic temperatures and will supply it to LNG (liquefied natural gas) propelled ships.

Hyundai Steel announced on the 9th that it has signed a supply contract for materials used in fuel tanks of LNG-powered container ships being built by Hyundai Heavy Industries. The material contracted this time is a 9% Ni (nickel) thick plate developed and completed in December last year.

The 9% Ni thick plate developed by Hyundai Steel is an ultra-high-performance steel used in LNG fuel tanks and other applications, exhibiting excellent impact resistance and weldability even in cryogenic environments (minus 196°C).

LNG has the advantage of significantly lower pollutant emissions compared to conventional ship diesel, but it requires technical constraints such as maintaining the storage facility interior below minus 165°C. Hyundai Steel began developing the new 9% Ni thick plate steel grade in September 2018 and, by focusing its R&D capabilities, secured stable quality levels by March last year.

In December, Hyundai Steel obtained all major domestic and international certifications from nine leading classification societies including KR (Korea), ABS (USA), and DNVGL (Norway/Germany), and at the same time completed customer evaluations by Hyundai Heavy Industries, preparing for the order.

The contracted order volume this time is for two ultra-large LNG-powered container ships. Hyundai Steel plans to actively pursue additional orders for LNG-powered ship fuel tanks as well as orders for onshore storage tanks used in LNG plants and LNG terminals, starting with this order.

A Hyundai Steel official said, "As global environmental regulations are gradually tightening, demand for LNG energy, which emits fewer pollutants, is steadily increasing. We will continue to target the LNG-related market by leveraging not only the 9% Ni thick plates supplied this time but also ultra-high-performance steels such as cryogenic rebar."

According to major securities firm reports, domestic shipbuilders' LNG-powered ship orders were 129 vessels in 2020 and are expected to reach 1,500 vessels by 2023. This accounts for about 67% of the world's expected ship orders.

Also, according to Korea's 9th Basic Plan for Electricity Supply and Demand, the share of LNG facility capacity is projected to be 30.6% by 2034, with coal's share shrinking and renewable energy expanding, positioning LNG as a bridging energy during the energy transition period.

Meanwhile, Hyundai Steel signed a strategic business agreement (MOU) with Korea Gas Technology Corporation in December last year to strengthen competitiveness in domestic and international plant project orders. Through this agreement, Hyundai Steel expects not only technological collaboration in the LNG plant sector but also an expansion in sales of related steel materials.

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