Hyundai Heavy Industries Group has begun to develop a floating storage re-gasification unit (FSRU) for ammonia in cooperation with Korea National Oil Corp. (KNOC) and Lloyd’s Register.
The group's two affiliates, Korea Shipbuilding & Offshore Engineering (KSOE) and Hyundai Heavy Industries Co., recently signed an agreement with KNOC and Lloyd’s Register to jointly develop an FSRU for ammonia.
An ammonia FSRU is a ship that stores liquefied ammonia, which is transported from production areas, re-gasifies it and supplies it to onshore customers.
Ammonia is an eco-friendly fuel that does not emit carbon dioxide during combustion. When mixed with coal, it can reduce carbon emissions while maintaining power generation, so demand for ammonia as an energy source for coal-fired power plants is on the uptick.
Ammonia is also attracting much attention as a carrier for hydrogen. Ammonia is a compound in which hydrogen and nitrogen are combined. Its liquefaction temperature is minus 33℃, much higher than the liquefaction temperature of hydrogen, which is minus 253℃. Ammonia has 1.7 times higher hydrogen storage density than liquid hydrogen in the same volume. These facts make ammonia suitable for long-distance transportation and storage of hydrogen.
No ammonia-FSRU has been built globally yet, but demand for it is expected to grow in light of its advantages versus land terminals -- a low construction cost, a shorter construction period and no need to secure a large installation site. KSOE is seeking to preempt the future market for ammonia FSRUs.
In accordance with this agreement, Hyundai Heavy Industries Group will take on the development of a re-gasification system. At the same time, it will create a basic design of an ammonia-FSRU that can be used for the clean ammonia acquisition and storage infrastructure project promoted by KNOC. Lloyd’s Register will be responsible for reviewing and approving the design.