Hyundai Heavy Industries Group, the world’s largest shipbuilder by sales, will team up with Hyundai Glovis, the logistics unit of Hyundai Motor Group [005380:KS], to develop the world’s largest liquefied carbon dioxide (LCO₂) carrier, as reported by Korea Economic Daily on June 7. Specifically, Hyundai Heavy Industries Group’s two shipbuilding subsidiaries, Hyundai Heavy Industries Co (HHI) [329180:KS] and Korea Shipbuilding & Offshore Engineering (KSOE) [009540:KS], have signed agreements with Hyundai Glovis, ship management firm G-Marine Service Co, the American Bureau of Shipping (ABS), and the Republic of the Marshall Islands to build an LCO₂ carrier with a loading capacity of 74,000 cubic meters. The new ship will be equipped with nine tanks and powered by liquefied natural gas(LNG)-powered engines to better meet environmental regulations in the maritime industry.

LCO₂ carriers emerged with the rapid development of the global carbon capture, utilization, and storage (CCUS) market. HHI anticipates that the global CCUS market would see more than 30% of annual growth. According to the International Energy Agency (IEA) Roadmap to Net Zero, the world will need LCO₂ carriers to transport 7.6bn tons of captured CO₂ by 2050. LCO₂ carriers could ease the carbon-reduction pressure on the shipping industry, as the industry currently contributes around 3% of the world’s annual carbon emissions. Last June, the International Maritime Organization (IMO) enacted short-term measures that will take effect in November 2022, including two rating systems for ships’ carbon intensity and energy efficiency. The IMO aims to cut the carbon intensity of all ships by at least 40% by 2030 from 2008 levels, before reaching a 70% reduction in greenhouse gas emissions by 2050 for the industry.

Sources:

https://www.kedglobal.com/shipping-shipbuilding/newsView/ked202206070013

http://koreabizwire.com/hyundai-heavy-hyundai-glovis-to-develop-worlds-largest-co2-carrier/220600

https://cleanenergynews.ihsmarkit.com/research-analysis/imo-has-a-new-plan-to-reduce-shippings-carbon-emissions-will-i.html