Hyundai Steel will develop new types of steel that can withstand extremely low temperatures and supply them to LNG (liquid natural gas) propulsion ships.
Hyundai Steel announced on Feb. 9 that it signed an order for materials for LNG-powered container ship fuel tanks under construction by Hyundai Heavy Industries on February 5.
The material for the fuel tank that was contracted this time is 9% Ni (Nickel) thick plate that was developed in December last year.
The 9% Ni thick plate developed by Hyundai Steel is an ultra-high-performance steel used in LNG fuel tanks due to its excellent shock tolerance and excellent welding performance even in extremely low temperature environments (below minus 196℃).
LNG has the advantage of significantly less pollutant emissions than conventional ship diesel, but technical restrictions such as keeping the inside of the storage facility below minus 165℃ is followed.
Hyundai Steel has started development of 9% Ni thick plate new steel since September 2018 and secured stable quality levels in March last year as a result of focusing on R&D capabilities.
In December, the company acquired all nine major domestic and international ships’ classification certificates, including KR (Korea), ABS (US), and DNVGL (Norway/Germany), and completed evaluation of Hyundai Heavy Industries' customers at the same time to prepare for the order.
The contracted amount of orders will be two LNG-powered super-sized container ships. Starting with this order, Hyundai Steel plans to actively win additional orders for LNG propulsion ship fuel tanks as well as land storage tanks used in LNG plants and LNG terminals.
"As global environmental regulations are gradually strengthening, demand for LNG energy with low pollutant emissions is gradually increasing," a Hyundai Steel official said.
He added, "We will continue to target LNG-related markets with ultra-high performance steel such as steel that withstands extremely low temperatures."
According to a report by a major securities firm, domestic shipbuilders won 129 LNG propulsion ships in 2020, and it is expected to reach 1,500 by 2023. This is about 67 percent of the world's estimated orders for ships.
In addition, according to Korea's ninth basic plan for electricity supply and demand, LNG will serve as a bridge during the energy conversion period when the proportion of LNG facilities will be reduced to 30.6 percent in 2034, and the proportion of renewable energy will expand.
Meanwhile, Hyundai Steel signed a strategic memorandum of understanding (MOU) with Korea Gas Technology Corporation in December last year to strengthen its competitiveness in winning orders for domestic and foreign plant businesses.
Through this agreement, Hyundai Steel expects not only technical cooperation in LNG plant field but also the effect of expanding sales of related steel.
