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Samsung Heavy Industries Lands $240 Million Order for Ammonia Carriers

Amid Rising Demand for Eco-Friendly Fuels, Samsung Secures Key Contract for Emission-Free Ammonia Vessels
South Korea
s 010140.KO Mid and Small Cap 2000
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In a significant move underscoring the shipping industry’s shift towards sustainable fuels, South Korea’s Samsung Heavy Industries Co. announced a substantial $240 million contract for constructing two very large ammonia carriers (VLACs). These vessels, ordered by an unnamed Oceania-based shipowner, are scheduled for delivery by 2027, marking a pivotal step in the adoption of ammonia as a viable alternative fuel.

The choice of ammonia for these carriers is notable. Ammonia’s capability for emission-free combustion, particularly its zero CO2 emission, positions it as a promising candidate in the maritime sector’s ongoing quest to reduce its carbon footprint. This development aligns with the global push towards decarbonization, an imperative in combating climate change.

Samsung Heavy Industries, through this deal, has now achieved a remarkable 72% of its annual sales target, amassing contracts worth $6.8 billion out of a projected $9.5 billion for the year. This year’s tally includes a diverse array of vessels, ranging from a floating liquefied natural gas production facility and seven liquefied natural gas carriers to 16 dual-fuel methanol-powered container vessels, along with two crude oil carriers and the aforementioned VLACs.

This contract not only represents a significant business milestone for Samsung Heavy Industries but also signals a broader industry trend. As shipbuilders and operators increasingly gravitate towards cleaner energy solutions, ammonia’s role as a sustainable maritime fuel is gaining traction, promising a greener future for global shipping.

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