November 24, 2024

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An image of the generator for the shaft generator system that HD Hyundai Marine Solution will supply to a shipping company in the Middle East. (HD Hyundai Marine Solution)

HD Hyundai Marine Solution, the ship maintenance unit of HD Hyundai, said Sunday that it has signed a contract with a Middle Eastern shipping company to supply shaft generator systems worth $37 million for 17 LNG carriers. The systems will be delivered sequentially until 2028.

The shaft generator system generates electricity by utilizing part of the rotational power from the ship’s main engine. Compared to medium-sized engines traditionally used as power sources, the main engines used for propulsion are more fuel-efficient, resulting in significant fuel savings, the company said.

Additionally, this system improves compliance with the increasingly stringent Energy Efficiency Design Index and Carbon Intensity Indicator set by the International Maritime Organization, making it a highly regarded eco-friendly ship power solution.

The market outlook is also promising. While shaft generator systems were once selectively installed by some shipping companies, they are becoming standard on large gas carriers like LNG and LPG carriers, with their use expanding to container ships, crude oil carriers and bulk carriers.

According to global market research firm Business Research Insight, the shaft generator system market, which was valued at $245.81 million in 2022, is expected to grow at a compound annual growth rate of 6.85 percent, reaching $365.80 million by 2028.

Since diversifying its business in 2020 and focusing on shaft generator systems as a key area, HD Hyundai Marine Solution has seen consistent growth. The company secured orders for four ships in 2021, two in 2022, nine in 2023 and 21 in 2024.

The significance of the latest order is particularly noteworthy as it was approved by a Middle Eastern shipping company, known for having stringent quality standards when selecting its ship equipment.

“As HD Hyundai Marine Solution has strengths in the ship retrofit business, we plan to strategically expand related orders,” an HD Hyundai Marine Solution official said.

HD Hyundai Marine Solution said it received high evaluations for its technical combination of key components like generators and variable frequency drives, as well as its ability to respond on-site.

By Jie Ye-eun (yeeun@heraldcorp.com)