KSOE Highly Likely to Land Mega Shipbuilding Order from Maersk
Korea Shipbuilding & Offshore Engineering (KSOE) is expected to win an order for methanol-fueled 15,000-TEU container ships from Maersk, the world’s largest shipping company. If KSOE secures the deal, it will further boost the company’s position in the eco-friendly ship market.
KSOE is negotiating a contract with Maersk for a dozen of 15,000-TEU methanol-powered container ships. Although contract details have not been disclosed, industry experts estimate the ship’s price at around 200 billion won per unit. If KSOE builds the 12 ships altogether, the contract value will reach about 2.4 trillion won.
Methanol is considered an eco-friendly fuel for ships, like liquefied natural gas (LNG), as it can reduce sulfur oxides by 99 percent, nitrogen oxides by 80 percent, and greenhouse gases by 25 percent compared to conventional vessel fuels. In particular, unlike LNG, methanol can be stored and transported even at room temperature and the normal atmospheric pressure and the initial infrastructure construction cost is relatively low. LNG requires high pressure and cryogenic temperature. Currently, about 20 methanol-powered ships are in service around the world, about one-third of which were built by KSOE.
Maersk announced in February a plan to operate carbon-neutral ships by 2023. The shipping giant signed a letter of intent (LOI) with Hyundai Mipo Dockyard, a subsidiary of KSOE, in June on building three 3,500-TEU methanol-powered container ships (including optional supplies). Hyundai Mipo Dockyard made its mark on the eco-friendly ship market by delivering two methanol-powered ships for the first time in the world in 2016.
In addition, the Korean Ministry of Oceans and Fisheries finally approved last month a revision by the Korean Register of Shipping of its rule on low flash point fuel ships that includes inspection standards for methanol-powered ships. This will allow Korean shipbuilders to respond more quickly to the methanol-powered ship market.
Source: Business Korea