Hanwha Power Systems signed a business agreement at 'Gastech 2024' with a major European LNG carrier shipping company for the retrofitting of ammonia gas turbines for eco-friendly fuel

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SEOUL, South Korea, Sept. 20, 2024 /PRNewswire/ -- Hanwha Power Systems, a total energy equipment and marine solutions company of Hanwha Group, signed a memorandum of understanding (MOU) with GasLog to convert its LNG carrier propulsion system to an ammonia gas turbine at Gastech 2024 held in Houston on September 19.

Through this agreement, the two companies will discuss in more detail the demonstration plan to replace the existing fossil fuel powered vessels with eco-friendly ammonia gas turbines. In August, Hanwha Power Systems and Hanwha Ocean with the support of GasLog completed preliminary engineering and economic feasibility reviews for LNG carrier retrofitting. Following the signing of this MOU, Hanwha Power Systems and GasLog, as strategic partners, will continue their collaboration focusing on performance, economic and compliance assessments from a comprehensive perspective to promote the application of ammonia gas turbines in vessel retrofits.

Meanwhile, in recent years, the shipping and shipbuilding industry has faced serious challenges in the face of carbon emission reduction regulations led by international organizations such as the International Maritime Organization (IMO) and the European Union (EU). In anticipation of this new reality, Hanwha Power Systems, through its affiliate, Power Systems Mfg., LLC (PSM), located in the United States, has been actively developing an innovative Ammonia (NH3) Combustion System to meet the anticipated requirements of the IMO and EU "Fit for 55". These development activities include a successful full-scale, high-pressure test campaign. The PSM Ammonia Combustion System is planned to be implemented with a gas turbine intended for this propulsion power application. 

Hanwha Power Systems' move is attracting a lot of attention from shipowners who currently lack suitable alternatives for carbon reduction. Ongoing discussions are also taking place with some major ship owners. In particular, ship owners point out that ammonia gas turbines do not require pilot oil during normal operation, whereas engines typically use pilot oil at all operating points. For a gas turbine using ammonia fuel it is possible to operate completely carbon-free, or operators can freely mix ammonia and natural gas so that they can respond flexibly and economically to future regulations. The gas turbine will generate a negligible amount of methane slip, even if natural gas is used as fuel. Feasibility studies are ongoing for other potential fuels that could be used.

After Hanwha Group acquired Hanwha Ocean, Hanwha Power Systems launched the Marine Solutions Business Division in May last year to promote ship modification and upgrades, ship availability and services, and eco-friendly fuel propulsion vessel business based on eco-friendly fuels.

In particular, within about a year of the launch of the Marine Solutions Business Division, the company has signed contracts with the world's leading shipping companies for LNG Reliquefaction Unit retrofit work for LNG carrier, cargo carrying capacity improvement retrofit work for container ships, and installation of energy saving devices. Through this, it has been recognized for its technology and capabilities as a comprehensive solutions company, and is growing rapidly in the ship eco-friendly retrofitting market.

The agreement is expected to play an important role in accelerating the transition to green fuels and could become a game-changer for many shipowners to tackle the carbon emissions challenges they face.

Justin Lee, CEO of Hanwha Power Systems, said, "If the demonstration of ammonia gas turbines for ship propulsion is successful, it will be a major turning point in the global shipbuilding and shipping industry paving the way for eco-friendly fuel propulsion in vessels."