Naftomar drops US$500M on very large ammonia carrier newbuildings

The newly ordered very large ammonia carrier (VLAC) vessels, once built, will be capable of transporting 93,000 m³ of ammonia, making them, "among the ammonia carriers ordered so far... the largest in the world", according to Hanwha. 

The shipyard, which rebranded from Daewoo Shipbuilding and Marine Engineering (DSME) in Q2 2023, said the four-vessel order totalled KRW656.2Bn (US$490M).

The quartet of vessels will be the first VLACs for Greece-based Naftomar, which has a fleet of more than 20 LPG carriers and a handful of tankers. 

Hanwha Ocean cited Naftomar’s recent focus on expanding its fleet of large LPG carriers and "the potential of the future ammonia market" as reasons for the order.

Calling ammonia "the most economical means of transporting hydrogen, to date," the shipyard said it has been in the process of developing technology for ammonia and other low-carbon fuels, including approvals in principle for 86,000-m³ ammonia carrier designs in September and October 2022 from French class society Bureau Veritas and UK-based Lloyd’s Register, respectively.

The four newbuild vessels will all be equipped with shaft-generator motor systems to improve fuel economy, as well as Hanwha’s proprietary HS4 ’smart-ship’ platform. The vessels are ammonia-ready and can be converted over to ammonia propulsion in the future, according to Hanwha.