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In a remarkable feat, HD Korea Shipbuilding & Offshore Engineering Co., the world's leading shipyard, has already achieved nearly one-third of its yearly order target due to brisk demand for green vessels, according to industry sources on Monday.
Thus far, HD Korea Shipbuilding has secured orders valued at $4.65 billion, representing the construction of 38 ships. According to the sources, this accounts for 34.4% of the shipbuilder's target of $13.5 billion for the year.
Korea Herald reported that the impressive progress had prompted HD Korea Shipbuilding, a sub-holding company of the HD Hyundai conglomerate specializing in shipbuilding, oil refining, and machinery, to consider revising its full-year target.
A Shift Towards a Greener Future
This year's target of $13.5 billion is a reduction from its initial goal of $15.7 billion set for 2023. Korea Bizwire noted that HD Korea Shipbuilding recorded actual orders amounting to $22.32 billion last year.
HD Korea Shipbuilding's outstanding performance in 2021 can largely be attributed to the surge in orders for eco-friendly vessels in response to stricter regulations on carbon emissions worldwide.
Rising Demand for Ammonia Carriers
Market watchers have observed a significant increase in orders for carriers of ammonia. These carriers are highly efficient in transporting hydrogen and are gaining attention as a future energy source.
Since 2021, HD Korea Shipbuilding has successfully secured orders to construct 74 liquefied petroleum gas and ammonia carriers with 65,000 cubic meters or larger capacity. These orders account for an impressive 56% of the global total, which is 131.
HD Korea Shipbuilding received orders to construct 11 ammonia carriers in January alone. Analysts suggest that HD Korea Shipbuilding could benefit from a slight increase in this year's estimated global ship orders, projected to reach 43.10 million compensated gross tons.
