Korean shipbuilders move away from LNG carriers to carbon capture and storage technologies

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Korean shipbuilders move away from LNG carriers to carbon capture and storage technologies

Published: 23 Jul. 2025, 10:39

Audio report: written by reporters, read by AI

The world’s largest 22,000-cubic-meter (5.8 million-gallon) LCO₂ carrier launched by HD Hyundai Mipo [HD HYUNDAI]

Korea’s shipbuilding industry had its share of fun with the liquefied natural gas (LNG) carrier boom. Now, it's up in arms to secure technology for carbon dioxide carriers.

Korea’s shipbuilding industry, which had been all-in on LNG carriers, now faces a pressing need to pivot as the need for a new environmentally-friendly ship to succeed LNG carriers is becoming urgent. LNG carriers account for roughly 50 percent of Korea’s commercial shipbuilding revenue, but only eight were ordered globally in the first half of this year, a drop of 87.7 percent compared to 65 in the same period last year.

Korea’s three major shipbuilders — HD Hyundai, Hanwha Ocean and Samsung Heavy Industries — have begun earnest efforts this year to develop and build liquefied carbon dioxide (LCO2) carriers, according to industry insiders on Monday. These companies are strengthening their technological capabilities through patent applications and increased research and development spending.

These moves are in line with Korean companies' endeavors to focus on future revenue streams through initiatives like developing ammonia-fueled ships and AI-powered autonomous vessels — both considered environmentally friendly solutions — as Chinese shipbuilders close the gap and Japanese firms work to rebuild their position in the competitive shipbuilding market.

2,500 ships needed by 2050

The shipbuilding sector is eyeing LCO2 carriers to align with the maritime industry’s transition to greener operations.

With the International Maritime Organization calling for a 100 percent carbon emissions reduction by 2050, the shipping and shipbuilding industries are accelerating efforts to adopt carbon capture and storage (CCS) technologies. Given the need to transport captured carbon over long distances, LCO2 carriers are seen as essential.

An HMM container carrier equipped with Samsung Heavy Industry's onboard carbon capture and storage system (OCCS) technology [SAMSUNG HEAVY INDUSTRIES]

According to British shipping and shipbuilding market analyst Clarkson Research, achieving carbon neutrality by 2050 will require the capture and storage of 6 gigatons of CO2 annually, with about 20 percent needing maritime transport. The Global CCS Institute, a leading authority on CCS, forecasts that while only 10 offshore CO2 transport and storage projects were at the front-end engineering design stage between 2020 and 2025, the number is expected to rise nearly fourfold to 38 between 2026 and 2030.

The shipbuilding industry estimates that roughly 2,500 LCO2 carriers will be needed by 2050.

The future growth engine

Korea’s major shipbuilders are actively positioning LCO2 carriers as a key part of their future portfolios.

HD Hyundai included LCO2 carriers in its road map for developing next-generation technologies aimed at achieving carbon neutrality, as outlined in its latest sustainability report. Among its affiliates, HD Hyundai Mipo Dockyard held a launch ceremony in April for a 22,000-cubic-meter (5.8 million-gallon) LCO2 carrier, the largest of its kind in the world. This vessel is the first of four ordered by Capital Clean Energy Carriers in Greece.

A rendering of Hanwha Ocean’s liquefied carbon dioxide (LCO2) carrier [HANWHA OCEAN]

Hanwha Ocean last year received basic design approval for a 40,000-cubic-meter large-scale LCO2 carrier from the American Bureau of Shipping, one of the world’s four major classification societies. Hanwha Ocean also signed a four-party agreement with ABS, Greece’s Ecolog and Scotland’s Babcock LGE to jointly develop the 40,000-cubic-meter vessel.

Samsung Heavy Industries is focusing on proving its onboard carbon capture and storage system, which captures carbon dioxide directly from vessels. On July 18, the company announced that it had successfully captured CO2 in real time from an operating ship and repurposed it as feedstock for environmentally friendly fuel. This demonstration has drawn attention as a step beyond simple carbon storage toward carbon recycling.

“LCO2 carriers appear to be one of the diverse environmentally friendly ship solutions shipbuilders are exploring as future growth drivers," said Yang Jong-seo, a researcher at the Korea Eximbank Overseas Economic Research Institute. "Given the shifts in the global energy market, shipbuilders will likely continue to face fierce competition to secure leadership in various green technologies.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY PARK YOUNG-WOO [[email protected]]