'Highest Price in 16 Years' Hanwha Ocean's Selective Order Strategy Pays Off in Profitability

Development of Carbon-Free Propelled Gas Carrier Based on Global Eco-Friendly Technology

Hanwha Ocean surprised the domestic shipbuilding industry last month by securing orders for two ultra-large crude oil carriers worth a staggering 342 billion KRW. This is the first order for ultra-large crude oil carriers in three years since 2021, and the contract amount is the highest in 16 years since the 2008 global financial crisis. With a single contract, Hanwha Ocean achieved about 7% of its recent sales of 4.86 trillion KRW. The background of this record-breaking order is evaluated to be Hanwha Ocean's selective order strategy.

According to the industry on the 26th, Hanwha Ocean is focusing on a selective order strategy based on world-class technology.

Hanwha Ocean Crude Oil Carrier (Provided by Hanwha Ocean)

On the 25th, Hanwha Ocean secured an order for eight liquefied natural gas (LNG) carriers from an Oceania region shipowner. The contract amount is approximately 2.4393 trillion KRW. Although Hanwha Ocean has not disclosed the counterpart, the industry estimates it to be QatarEnergy, the Qatar state-owned energy company, considering the volume of the order.

Hanwha Ocean signed a Memorandum of Agreement (MOA) for 12 LNG carriers with QatarEnergy on February 29. Accordingly, both parties are reportedly reviewing the details ahead of the final contract for the remaining four vessels.

Continuing its winning streak in orders, Hanwha Ocean is actively investing in research and development to widen the technological gap with rapidly advancing Chinese companies.

Securing funds through a paid-in capital increase last year, Hanwha Ocean is developing an 'eco-friendly propulsion system' based on ammonia, methanol, and hydrogen, and plans to develop ammonia, carbon dioxide, and hydrogen carriers. The company plans to actively respond to the demand for eco-friendly products and technologies following the recent strengthening of global environmental regulations.

Hanwha Ocean also plans to develop a 'zero-carbon propulsion gas carrier' as a decarbonization game changer. Currently, even if ships use eco-friendly fuels such as ammonia or methanol, about 5-15% fossil fuel is required for stable combustion due to limitations in internal combustion engines. Hanwha Ocean is developing a zero-carbon ship that can operate solely on 100% ammonia by installing an ammonia gas turbine developed by Hanwha Power Systems.

Hanwha Ocean LNG Carrier Rendering (Provided by Hanwha Ocean)

The core technology for eco-friendly ships started at the 'Energy System Experimental Center,' the world's first cryogenic research facility built by a shipyard in 2015. Instead of simulation experiments using liquid nitrogen, experiments are conducted using LNG with the same cryogenic system as actual operation. It is the first domestic shipyard to receive certification for handling cryogenic gases and independently conducts performance tests and technical verification of self-developed products.

In addition to LNG reliquefaction or regasification systems, Hanwha Ocean is conducting various research in the eco-friendly energy field, including systems supplying ammonia as a next-generation eco-friendly fuel, systems decomposing ammonia to produce hydrogen, and systems managing liquid carbon dioxide cargo, and is verifying them through demonstration facilities.

Hanwha Ocean stated, "Based on differentiated technology and construction experience accumulated over a long period and the application of leading eco-friendly technologies, we plan to maximize profitability through continuous pursuit of a selective order strategy focused on profitability."

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