HD KSOE won orders for 25 ships since the beginning of 2024 worth over $2.15 billion
HD KSOE won orders for 25 ships since the beginning of 2024 worth over $2.15 billion - Offshore Energy
HD KSOE won orders for 25 ships since the beginning of 2024 worth over $2.15 billion
HD Korea Shipbuilding & Marine Engineering, the holding entity of HD Hyundai Shipbuilding Division, has kickstarted the year on a high note with a flurry of orders.
Namely, since the beginning of the year, the South Korean shipbuilding major has signed construction contracts for a total of 25 ships worth approximately $2.15 billion (KRW 2.8218 trillion) with shipping conglomerates from Europe, Oceania, Asia, and the Middle East.
The deals include 2 very large ammonia carriers, 15 medium-sized PC ships, 6 very large LPG carriers, and two LNG carriers.
The winning streak was initiated on Thursday, January 4, with a contract to construct two 88,000 cbm LPG carriers for an undisclosed shipowner from Europe. The value of the deal is KRW 303 billion ($230 million). The ships are slated for delivery by the end of June 2027, HD KSOE revealed in its stock exchange filling. The vessels will be constructed by HD Hyundai Heavy Industries.
Last week, the shipbuilding giant also secured an order for two 88,000 cbm ultra-large ammonia carriers from an Oceania-based shipping company. These vessels, equipped with LPG dual-fuel propulsion engines, are the largest vessels capable of traversing the Old Panama Canal. The deal, worth KRW 317.3 billion ($240 million), will see HD Hyundai Heavy Industries in Ulsan constructing and delivering the carriers to the shipowner by the first half of 2027.
At the beginning of this week, HD Korea Shipbuilding & Marine Engineering clinched an impressive deal with Asian shipping companies for 15 medium-sized product carriers, totaling KRW 942.5 billion ($718 million). These vessels, measuring 183m in length, 32.2m in width, and 19.1m in height, will be constructed at Hyundai Mipo Dockyard in Ulsan, with deliveries scheduled for the second half of 2026.
Continuing its winning streak, on Tuesday, January 9, the company secured orders from a Middle Eastern shipping company for four 88,000 cbm LPG/ammonia carriers and two 174,000 cbm LNG carriers, all equipped with dual fuel propulsion engines.
The order was confirmed by Nakilat ascribing the order to strategic expansion.
Nakilat said the new LNG carriers and LPG carriers will integrate the latest technologies, showcasing advanced environmentally friendly and efficient propulsion systems through fuel-saving devices.
Valued at KRW 1.2588 trillion ($959 million), these six ships will be built by Hyundai Samho Heavy Industries in Yeongam, Jeollanam-do, and handed over to the shipowner by the second half of 2027.
Upon delivery, Nakilat’s LNG fleet will expand to 71 vessels, and the LPG fleet will grow to eight vessels with the addition of four new vessels.
“Since the beginning of the year, inquiries about ship orders from various ship types have continued,” an official from HD Korea Shipbuilding & Marine Engineering said, emphasizing the company’s efforts to maintain a stable order backlog while strategically focusing on high-value-added ships to bolster profitability.
In 2023, HD KSOE signed contracts worth $22.6 billion, exceeding its annual order target of $15.7 billion. The shipbuilding heavyweight was the only South Korean yard of the ‘Big Three’ to meet and exceed its annual targets last year, leaving behind Hanwha Ocean and Samsung Heavy Industries.
Related Knowledge Center: Offshore wind energy
Over the next decade, U.S. offshore wind power is expected to grow from a single 30-megawatt wind farm off Rhode Island to more than 2,000 MW of capacity along the Atlantic Seaboard. There are contracts for wind power off the coasts of Massachusetts, Connecticut, New York, Maryland, New Jersey, Rhode Island, and Virginia.
The National Renewable Energy Laboratory has estimated the United States has over 4,000 gigawatts (GW) of offshore wind potential, enough to power the country four times over.
The growth in part being spurred by state solicitations, including in New York, where then-Gov. Andrew Cuomo (D) set a commitment of 9,000 MW of offshore wind by 2035, and in Connecticut, where in June 2021, Gov. Ned Lamont (D) signed legislation authorizing the construction of 2,000 MW of offshore wind by 2030.
The offshore development is also being driven by an investment tax credit set to end in December 2019 and is equal to 12 percent of expenditures. U.S. Sens. Susan Collins (R-Maine) and Tom Carper (D-Del.) have introduced a bill to extend the tax credit for up to eight years.
The Interior Department has held eight competitive lease sales that resulted in 15 offshore wind leases over 1.7 million acres that has the potential for 21 GW of capacity. In February 2022, the Bureau of Ocean Energy Management completed a bidding process that realized $4.37 billion for 488,000 acres across six lease areas in federal waters off New York and New Jersey.
Projects have also been proposed off the Southeast coast, off California and Hawaii, and for the Great Lakes.