South Korea and China Clash Over Ammonia Carrier Supremacy

South Korea and China are engaged in an intense competition to build vessels that transport liquefied ammonia, a carbon-free energy source. This high-stakes rivalry is expanding beyond liquefied natural gas (LNG) into the segment of very large ammonia carriers (VLACs). Shipbuilders from both countries are vying for the titles of 'world's first' and 'world's largest' in the VLAC market.

The competition has been fierce, with South Korean shipbuilders HD Hyundai Samho and Hanwha Ocean taking nearly half each of the 20-plus VLAC construction orders placed in the first half of this year. VLACs are technically demanding vessels due to ammonia's corrosive properties and high density, making them a lucrative but challenging market to compete in.

HD Hyundai Samho won an order for three 90,000-cubic-meter VLACs from Synergy Shipping, with a total value of ₩545.6 billion (approximately $385.2 million). Meanwhile, Jiangnan Shipyard delivered a 93,000-cubic-meter VLAC to Singapore-based shipowner EPS in June, claiming it as the 'world's largest' VLAC.