On September 22, HD Hyundai Marine Solutions announced the signing of a $37 million contract to supply Shaft Generator Systems for 17 liquefied natural gas (LNG) carriers for a Middle Eastern shipping company. This significant contract represents a key milestone in the company’s efforts to diversify its business, particularly since it identified the Shaft Generator System as a critical area for growth in 2020.
The Shaft Generator System harnesses part of the rotational energy from a ship’s main propulsion engine to generate electricity, providing superior fuel efficiency compared to traditional medium-sized engines. This technology not only enhances the Energy Efficiency Design Index (EEDI) and Carbon Intensity Indicator (CII) but also complies with the stringent environmental standards set by the International Maritime Organization (IMO).
HD Hyundai Marine Solutions plans to deliver these systems in stages by 2028. The market for Shaft Generator Systems was valued at $245.81 million in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 6.85%, potentially reaching $365.80 million by 2028. Demand for these systems is expected to surge further after 2030 as carbon emission regulations tighten.
The order from a Middle Eastern shipping company, recognized for its conservative equipment selection and rigorous quality standards, underscores the strong evaluations HD Hyundai Marine Solutions received for its technical expertise, particularly in integrating essential components such as generators and variable frequency drives (VFDs). An official from the company noted that the tightening carbon emission regulations will likely increase the demand for retrofitting existing vessels with Shaft Generator Systems.
Since 2020, HD Hyundai Marine Solutions has actively pursued orders for these systems, with notable increases in demand: four units in 2021, two in 2022, nine in 2023, and now 21 units in 2024, including the recent contract. This strategic focus reflects the company’s commitment to innovation and sustainability within the maritime sector.
As LNG carriers increasingly adopt advanced technologies for safer and more efficient operations, the market for Shaft Generator Systems continues to expand, driven by the industry’s shift towards fuel-efficient and environmentally friendly solutions. According to Business Research Insights, this trend is expected to persist, indicating a significant transformation in maritime practices.
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