[Visiting Net Zero No.1] "Leading the Eco-friendly Ship Market Based on LNG Technology"

Interview with Yoo Byung-yong, Senior Advisor at Korea Shipbuilding & Offshore Engineering

[Asia Economy Reporter Choi Dae-yeol] The leader in eco-friendly ships with low carbon emissions is undoubtedly South Korea's shipyards. This is thanks to their early experience in building liquefied natural gas (LNG) carriers and propulsion ships. According to the government, last year, Korean shipyards secured nearly 90% of the global LNG carrier orders. In 2020, Hyundai Samho Heavy Industries became the first in the world to build and deliver a large LNG-powered container ship to a shipowner, proving their technological prowess by completing construction ahead of a Chinese shipyard that had placed the order seven months earlier. We recently spoke with Yoo Byung-yong, Senior Researcher at the Energy Technology Research Institute of Korea Shipbuilding & Offshore Engineering's Future Technology Research Institute (photo), who is at the forefront of domestic eco-friendly ship technology development, about the current status.

- How far has eco-friendly ship development progressed?

△ LNG propulsion technology has been established in the market, and now advanced research and development (R&D) is underway to make it more economical, eco-friendly, and easier to operate. Ammonia propulsion is gaining attention as a potential future ship fuel, with commercialization targeted around 2024-2025. Last year, the basic design was developed and received classification approval, aiming to demonstrate core technologies such as toxicity treatment, fuel supply systems, and exhaust gas processing.

- Isn't LNG fuel sufficient?

△ Currently, LNG is clearly the most efficient. However, this could change depending on how environmental regulations evolve. Carbon taxes could surge, or if carbon dioxide emissions are legally banned, the utility of ammonia or methanol would increase.

- What aspects do global shipping companies, such as those in Europe, consider important?

△ They emphasize the improvement effect, i.e., how much carbon emissions are reduced. Since ships operate for at least 20 years once built, eco-friendly technology must guarantee performance for 20 years. Recently, with rising crew management labor costs, it is also important that maintenance and operational costs are low. Even if the fuel is eco-friendly, stable supply and pricing are crucial, so the availability of bunkering infrastructure is also a concern.

- It must be difficult for individual shipowners or shipyards to prepare fuel supply infrastructure.

△ The expectation that LNG will remain the main fuel until 2050 is because bunkering infrastructure is sufficient. For widespread use as ship fuel, a large-scale logistics system must be in place. Ammonia and methanol still lack large-scale infrastructure in the industry. If these fuels are widely used in other industries in line with carbon neutrality trends, the construction of related ship fuel infrastructure is expected to accelerate.

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