99% of global maritime cargo is handled by ships using fossil fuels like diesel and heavy oil. However, amid a massive shift toward the 2050 carbon neutrality goal, ammonia is emerging as a key fuel to usher in a zero-carbon shipping era. Ammonia does not emit carbon dioxide when burned and is easier to store and transport compared to other eco-friendly fuels like hydrogen, which requires cryogenic cooling. Its supply chain is also well-established due to its long-standing use in the fertilizer and chemical industries.

South Korean shipbuilders are already pioneering the ammonia propulsion era. HD Hyundai is set to deliver the world’s first ammonia-powered vessel next year, while Hanwha Ocean and Samsung Heavy Industries are also advancing proprietary technology development. The Korean shipbuilding industry is making a full-scale effort to secure leadership in the new fuel era. This transition holds the potential to disrupt the ship engine market, which has long been dominated by European companies over the past century. Until now, ship engines were monopolized by a few European firms. Korean shipbuilders, targeting the zero-carbon ship era, have set ambitious plans to preempt the next-generation fuel engine market.

Three Shipbuilders Compete in Ammonia Technology
On the 24th, Samsung Heavy Industries announced it had obtained basic design certification from the French classification society (BV) for an “ammonia-based hydrogen fuel cell-powered crude oil carrier.” This certification confirms that vessels built according to this design will be safe and technically viable. Samsung’s ammonia-based hydrogen fuel cell technology separates ammonia into hydrogen and nitrogen. The separated hydrogen is supplied to fuel cells to generate electricity, propelling the ship through a chemical reaction between hydrogen and oxygen.

HD Hyundai is leading the charge toward the ammonia propulsion era. It is already constructing ammonia-powered vessels that use ammonia as fuel. In March 2023, the company received an order from Belgian shipping firm EXMAR for four 45,000 cubic meters-class ammonia carriers—the world’s first such order—and has since secured a total of eight ammonia-powered vessels. The first delivery is scheduled for the first half of next year. HD Hyundai has also developed the world’s first high-pressure direct injection dual-fuel ammonia engine in October last year, focusing heavily on ammonia-related technologies.

Hanwha Ocean unveiled a 174,000 cubic meters-class zero-carbon LNG carrier model and concept at GasTek 2025, the world’s largest gas exhibition held in Milan, Italy, this month. The company plans to equip this carrier with an ammonia gas turbine. Hanwha Ocean stated, “The ammonia gas turbine we are developing can combust 100% ammonia.” The company is also designing seven container ships, worth 2 trillion Korean won, ordered by Taiwan’s Yang Ming Marine, as “ammonia-ready” vessels. This means they can be retrofitted in the future to use ammonia instead of LNG.

◇Ammonia as the Key to Eco-Friendly Shipping
Currently, Germany’s MAN effectively dominates the global ship engine market, with 80–85% of large ship engines based on its designs. Korean shipbuilders have remained “license producers” and lacked the capability to design their own fuel systems. However, HD Hyundai’s ammonia dual-fuel engine was developed using proprietary high-pressure direct injection technology, differing from MAN’s existing designs. Hanwha Ocean and Samsung Heavy Industries are also aiming to secure independent ammonia propulsion systems. If the three shipbuilders vertically integrate the entire ammonia propulsion system, analysts predict Korea could seize leadership not only in shipbuilding but also in engines and propulsion systems.

The International Maritime Organization (IMO) announced in 2023 its goal to achieve “Net Zero” by 2050, reducing greenhouse gas emissions to zero on a net basis compared to 2008 levels. Ships typically have a lifespan of 25–30 years, meaning eco-friendly vessels must be built immediately to avoid being phased out after 2050. According to global market research firm Lucintel, the ammonia-fueled ship market is expected to grow at a compound annual rate of 17.6% from 2024 to 2030.
Source: The Chosun Daily