HD Hyundai Heavy Industries has secured a contract to build two very large ammonia carriers (VLACs) for an Oceania-based shipping company, valued at 339.6 billion won ($261.2 million). The deal, announced on October 15, bolsters the South Korean shipbuilder’s already impressive order book for the year.
The VLACs are slated for delivery by September 2027, adding to HD Korea Shipbuilding & Offshore Engineering’s (KSOE) growing portfolio. KSOE, the parent company of HD Hyundai Heavy Industries and the shipbuilding arm of HD Hyundai Group, has now accumulated orders for 169 vessels, including one offshore facility, worth $18.84 billion in 2024.
This latest contract pushes KSOE’s order intake to 139.5% of its annual target of $13.5 billion, highlighting the robust demand for diverse vessel types. The company’s order book spans LNG carriers, petrochemical carriers, and container ships, reflecting the evolving needs of the global shipping industry.
While the ammonia carrier order signals growing interest in alternative fuel transportation, industry analysts caution that sustained demand will depend on broader adoption of ammonia as a marine fuel and its role in the energy transition.
