HD Hyundai Marine Solutions announced  that it has signed a $37 million contract to supply “Shaft Generator Systems” for 17 LNG carriers from a Middle Eastern shipping company. This significant order marks a milestone in the company’s business diversification efforts, which began in 2020 when it identified the ‘Shaft Generator System’ as a key new business area.

The ‘Shaft Generator System’ utilizes part of the rotational power of the ship’s main propulsion engine to generate electricity, offering higher fuel efficiency compared to traditional medium-sized engines. This system not only improves the Energy Efficiency Design Index (EEDI) and Carbon Intensity Indicator (CII) but also aligns with the stringent environmental regulations set by the International Maritime Organization (IMO).

HD Hyundai Marine Solutions plans to deliver the ordered “Shaft Generator Systems” sequentially by 2028. The market for these systems was valued at $245.81 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 6.85%, reaching $365.80 million by 2028. The demand for such systems is projected to increase even more rapidly after 2030 when carbon emission regulations become more stringent.

The large-scale order from a Middle Eastern shipping company, known for its conservative approach and stringent quality standards, is a testament to the high evaluations HD Hyundai Marine Solutions received for the organic technical combination of key components such as generators and variable frequency drives (VFDs). An official from HD Hyundai Marine Solutions stated, “With the strengthening of carbon emission regulations, the demand for retrofitting Shaft Generator Systems on operating ships is also expected to increase.”

Since 2020, HD Hyundai Marine Solutions has been actively securing orders for the Shaft Generator System, with 4 units ordered in 2021, 2 units in 2022, 9 units in 2023, and 21 units in 2024, including the latest order. The company’s strategic focus on this technology highlights its commitment to innovation and sustainability in the maritime industry.

LNG carriers, which require advanced technology and equipment to ensure safe and efficient operations, are among the vessels adopting these systems. The market for Shaft Generator Systems is growing, driven by the need for more fuel-efficient and environmentally friendly ship technologies. According to Business Research Insight, this trend is expected to continue, indicating a broader industry shift towards sustainability.

Source: Business Korea