A Deal Worth 1.65 Tril. Won
Korea Shipbuilding & Offshore Engineering (KSOE) will build eight 16,000-TEU methanol-powered ships for Maersk, the world's largest shipping company. KSOE is the world’s first shipbuilder to build such a large methanol-powered ship.
KSOE said on Aug. 24 that the order from Maersk is worth 1.64 trillion won. The contract includes an option to order four more ships in the future. These ships will be loaded with a methanol engine and will be delivered one by one by 2024.
Hyundai Mipo Shipyard, a subsidiary of KSOE, delivered two methanol-powered ships in 2016 for the first time in the world. About one-third of the 20 methanol-powered ships sailing around the world were built by KSOE. This is why Maersk chose KSOE as its partner. Maersk has been expanding its methanol-powered fleet in earnest since it placed an order for a 2,100-TEU vessel to KSOE in June.
Methanol-powered ships have come into spotlight as "post-LNG ships along with ammonia- and hydrogen-powered ships. Shipping companies need to secure eco-friendly vessels other than LNG-powered ships to meet stricter environmental regulations set by the International Maritime Organization (IMO). KSOE is planning to lead the eco-friendly vessel market with ships that use methanol as an engine fuel.
Methanol has been considered a suitable fuel for the carbon-neutral era as it can reduce pollutants such as sulfur oxides and nitrogen oxides by 80 percent to 90 percent compared with the current vessel oil. Until now, methanol has not been used as a fuel for ships due to a high production cost. However, as a spike in production of natural gas, the main material for methanol, has pulled down the methanol production cost.
Unlike LNG that requires high pressure and cryogenic temperature, methanol can be stored and transferred even at room temperature and general atmospheric pressure, lowering initial infrastructure construction costs. Another advantage is that even if discharged into the ocean, methanol dissolves quickly in water and does not cause marine pollution.