KOSE with MAN ES sets out to win LNG marine engine market

[Source: KSOE]

Korea Shipbuilding & Offshore Engineering Co. (KSOE) is accelerating its efforts to diversify vessel engine lineup by adding large-size and green engines to its portfolio amid growing demand for less pollution-emitting vessels.

Hyundai Heavy Industries Co., KOSE’s shipbuilding and marine engine manufacturing unit, has successfully developed a dual-fuel liquefied natural gas (LNG) engine, dubbed ME-GA, through a technology partnership with MAN Energy Solutions SE (MAN ES), according to industry sources on Thursday. MAN ES, based in Germany, is the world’s leading provider of diesel engines and turbomachinery for vessels.

In July, Hyundai Heavy Industries placed the first order of ME-GA engine for its LNG-powered vessel for delivery in August next year.

The Korean and German partners’ collaboration is to diversify their vessel portfolio amid growing competition with Winterthur Gas & Diesel (WinGD), a Switzerland-headquartered two-stroke low-speed gas and diesel engines developer under Chinese shipbuilding giant China State Shipbuilding Corporation (CSSC). WinGD has won marine engine orders from 157 LNG vessels from 2018 to October this year while MAN ES obtained 41.

[Source: MAN Energy Solutions SE]

An engine is responsible for the largest 10 percent of total shipbuilding costs.

Hyundai Heavy Industries has been the right partner for MAN ES in strengthening its capacity in marine engine production. The Korean shipbuilder’s HiMSEN engine currently leads the global medium-speed marine engine market with a 20 percent share. The company as a licensee manufacturer also leads the large marine propulsion engine market, which includes LNG and ammonia-powered vessels, by claiming about 30 percent.

The two partners’ newly developed engine system reportedly is capable of delivering the same work output as rivaling WinGD’s low-pressure dual-fuel engine but with cheaper operational cost.

Their move is also expected to help them expand their eco-friendly engine portfolio at a time when the importance of green engines such as an LNG engine is growing as the global marine industry rapidly moves to adopt eco-friendly technology in line with the international efforts to achieve net zero in carbon emissions by 2050.

Their duel fuel marine LNG engine uses natural gas to convert chemical energy into mechanical energy, and it is considered eco-friendly engine technology.

Separately, KSOE is developing a host of eco-friendly vessels with an aim to begin commercial production of ammonia-powered vessels from 2025 and small hydrogen-powered vessels from 2023, in addition to completing the test run of large liquid hydrogen carriers by 2027.

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