Korean Register (KR) and Hyundai Heavy Industry (HHI) Group have signed an MOU to work together in strategic partnership to address key environmental challenges facing the industry, specifically decarbonisation, and forthcoming IMO regulations.
The HHI Group encompasses a range of companies including Korea Shipbuilding & Marine Engineering, Hyundai Heavy Industries, Hyundai Samho Shipbuilding, Hyundai Mipo Shipbuilding, and Hyundai Global Services. The MOU was signed on 12 April and will see the exchange of technical information and human resources to drive progress on environmental matters.
Under the agreement, KR and HHI Group have agreed to work together to;
- research optimal solutions to improve the energy efficiency existing ship index (EEXI)
- develop measures to improve ship operation efficiency to improve carbon intensity indicator (CII)
- work together on the joint development of non-carbon fueled vessels such as ammonia and hydrogen
- explore ways enhancing the environmental life cycle of a ship by reducing gas emissions, etc.
IMO announced the possibility of more stringent environmental regulations at the 75th MEPC meeting, in order to meet the goal of reducing greenhouse gas (GHG) emissions by 50% and carbon dioxide by 70% by 2050, compared to 2008 levels.
As a result, major shipping countries, shippers and financial sectors are gradually expanding policies that give incentives to ships with low GHG emissions and disadvantage ships with high emissions.
In the short term, owners of existing ships may need to implement measures to meet EEXI and CII regulations which are expected to come into force in 2023. In the longer term, shipowners will potentially need to convert their fleet into vessels propelled by carbon-neutral fuels such as ammonia and hydrogen.
Moving forward, KR and HHI group will provide expert technical support to shipping companies enabling them to respond effectively to the new environmental regulations while strengthening the Korean shipbuilding industry’s technical superiority in the global market.
Dae-heon Kim, Executive Vice President of KR R&D Division said, “We are determined to find the best technical solutions to the environmental regulations currently facing the shipping industry. This MOU brings KR and HHI Group together, sharing our expertise and HHI Group’s industry-leading ship building technology to develop eco-friendly ships for a safer and more sustainable future.”
Won-Ho Joo, Executive Vice President of Technical Department of Hyundai Heavy Industries added, “Having world’s strongest track record for building ships propelled by dual fuel such as LNG, LPG and methanol, HHI group will endeavor to develop various technologies for effectively responding to the strengthened environmental regulations thereby creating values for the future market” and “Through continuous R&D activities and construction of eco-friendly ships, we will do our best to realise ESG(Environment, Social and Governance) in the shipbuilding sector.”