Hyundai Mipo Dockyard (HMD) has entered a deal with Ilshin Logistics to build a new 50,000dwt liquid natural gas (LNG) fuelled bulk carrier.

The carrier will be built as part of Ilshin Logistics' collaboration with steelmaker POSCO, with delivery expected in the last quarter of next year.

Once complete, the ship will transport limestone cargoes in the Korean coastal trade for Posco.

Lloyd’s Register (LR) and the Korean Register (KR) will provide dual classification and certification to the ship, verifying compliance with the International Gas Fuel (IGF) Code.

"We should not hesitate to adopt new technologies and materials as we strive for a greener shipbuilding and shipping industry."

Posco has developed a new kind of cryogenic steel, which is rich in manganese and will be used for the 500m³ capacity type ‘C’ LNG fuel tank, located on the aft mooring deck.

Hyundai Mipo Dockyard initial planning division EVP Chang-hyun Yoon said: "We should not hesitate to adopt new technologies and materials as we strive for a greener shipbuilding and shipping industry.

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“The world’s first application of high-manganese steel for an LNG storage tank is a challenge but I believe that the material expertise of Posco and the engineering capability of HMD will offer the right solution to the shipowner.

“Additionally, the technology evolution represented by this project paves the way for small-scale LNG carrier designs incorporating high-manganese steel Type ‘C’ cargo tanks at a competitive price."

LR and other classification societies have already approved Posco’s high-manganese steel and its welding consumables.

Compared to traditional steel, Posco’s high-manganese steel is less expensive and can help reduce investments in LNG-fuelled and LNG carrier systems.

Lloyd’s Register Korea chief representative and marine manager Jin-Tae Lee said: "The successful construction of this vessel will be a very good trigger to draw the LNG industry’s attention to the widespread adoption of high-manganese steel in marine applications, for those who are hesitant to adopt LNG-fuelled systems due to high CAPEX.

“This contract is evidence that shipping can make progress to address cost challenges as well as provide technical solutions in tough markets, and doing so without compromising both safety and performance."

A member of LR, LRQA has recently verified the greenhouse gas (GHG) reporting of Orient Overseas Container Line’s (OOCL) two container terminals, including Long Beach Container Terminal in the US and Kaohsiung Container Terminal in Taiwan.