Hanwha Ocean lands $247 million order for VLACs

Hanwha Ocean clinched a 331.2 billion won ($247 million) order for two very large ammonia carriers (VLACs) from an undisclosed Oceanian shipper, according to the shipbuilder on Monday.

Pictured is a rendered image of an ammonia carrier developed by Hanwha Ocean. [YONHAP]

Hanwha Ocean clinched a 331.2 billion won ($247 million) order for two very large ammonia carriers (VLACs) from an undisclosed Oceanian shipper, according to the shipbuilder on Monday.

The environmentally friendly vessels will be constructed at Hanwha Ocean's shipyard in Geoje on the south coast and delivered to the Oceanian shipping company by the second half of 2027, the company said.

Hanwha Ocean said each VLAC can carry 93,000 cubic meters of ammonia, the largest of its kind in the world. It marks this year's first contract won by the shipbuilder.

The company has been focusing on building environmentally friendly vessels, including ships powered by ammonia, hydrogen and hydrogen fuel cells.

Over the past two months alone, Hanwha Ocean has obtained orders to construct seven VLACs.

Hanwha Ocean, formerly Daewoo Shipbuilding & Marine Engineering (DSME), set sail as the shipbuilding arm of Hanwha Group in May last year after obtaining regulatory approval for its purchase of a 49.3 percent stake in DSME and managerial control.

"We will set the gold standard for environmentally friendly shipbuilding technology through continuous technology development," said a spokesperson for Hanwha Ocean.

BY KIM JU-YEON, YONHAP [kim.juyeon2@joongang.co.kr]