Hyundai Heavy Industries (HHI) marine services spin-off Hyundai Global Services (HGS) has signed a memorandum of understanding (MoU) with Korean Shipping company KSS Line to enter the eco-friendly ship business.
The MoU will see the two companies collaborate to retrofit the medium-sized LPG carriers owned by KSS Line with an Exhaust Gas Cleaning System.
All ships and vessels possessing this system will be able to fulfil the International Maritime Organisation (IMO) sulphur emission regulations of 0.5%, including when using bunker-c oil.
The oil is cheaper than marine gas oil and therefore will help to reduce fuel costs for the company.
From this month onwards both the companies will be operating a task force team, which will be responsible for conducting the basic engineering of the system. The task force is expected to finalise detail engineering by the end of the year.
KSS Line has planned to evaluate fuel savings in the meantime by analysing internal voyage data that will be collected from the retrofitted ships, and carry out the feasibility study of the joint business.
It is estimated that more than 15,000 ships will have the system on board by 2020, and the global market is set to grow by $1bn in the same timeframe.
HGS is also scheduled to enter into a strategic partnership with Sweden-based Alfa Laval in order to retrofit its Ballast Water Treatment System.
Image: Gas Star, 84,000cbm LPG carrier of KSS Line which will be retrofitted with new Exhaust Gas Cleaning System. Photo: courtesy of Hyundai Heavy Industries.