Hyundai Gloves, a logistics company in South Korea’s Hyundai Group, is the latest shipping company to announce plans to expand its fleet to the emerging market. The company, which operates more than 275,000 vehicles a year, has announced that it has partnered with Trafigura to export ammonia and liquefied petroleum gas (LPG).
“Fortunately, Hyundai Gloves, which is entering the gas transportation business, is confident in this agreement,” the company said in a joint statement. “It plans to focus on building hydrogen value chains by transporting ammonia and LPG to meet global demand,” said Hyundai Gloves.
For this project, Hyundai Gloves plans to invest more than $ 170 million in the construction of two VLCs. The command ship is on its way to another group in Hyundai, Hyundai Samho, which is scheduled to be delivered in 2024. The new ships are expected to be among the world’s largest cargo carriers with a capacity of 86,000 m3.
Unlike conventional gas carriers that typically carry LPG, Hyundai Gloves said the new VLGCs are specifically designed to transport ammonia that requires specially designed tanks. According to the company, there are currently only 20 VLGCs capable of loading less than 10 percent of VLGC ships.
They believe that the market will grow faster and that they want to take advantage of the first move, contrary to expectations. Ammonia, currently used mainly for fertilizer and petrochemical production, is transported in small and medium-sized gas carriers with a load capacity of 35,000 m3 or less. In the future, as ammonia becomes the basis for alternative power generation, Hyundai Gloves projects that VLGC plans to become the ideal vessel for ammonia shipment.
Hyundai Gloves pays special attention to ammonia seawater, which is considered to be the most efficient hydrogen storage and transport medium in the current state of technology. They are relatively easy to drink compared to hydrogen, and today ammonia is used, making it important for infrastructure and storage facilities already in place in many countries.
Trafigura, one of the world’s largest retailers, has been looking to explore future opportunities in hydrogen-related products and, like Hyundai Gloves, to seek leadership positions. During the summer, Trafigura signed an agreement with German company Hy2gen to develop a quantitative study of green ammonia infrastructure and production needs to decompose the shipping industry.