Korea, Greece to jointly develop technologies for eco-friendly vessels

Economy

Published: 27 Jun. 2023, 19:48 Updated: 27 Jun. 2023, 22:19

Korea, Greece to jointly develop technologies for eco-friendly vessels

Korea and Greece signed a business agreement to jointly develop technologies to renovate existing ships into eco-friendly ones on Tuesday at Lotte Hotel in central Seoul. [MINISTRY OF TRADE, INDUSTRY AND ENERGY]

Korea and Greece agreed Tuesday to jointly develop technologies to renovate existing ships into eco-friendly ones in response to tougher emission regulations in the global shipping sector, Seoul's industry ministry said.

Under the agreement, the two nations will carry out projects to develop technologies for the designing of propulsion systems and shipbuilding to have existing ships be fueled by liquefied natural gas, liquefied petroleum gas, methanol and other clean energy resources, according to the Ministry of Trade, Industry and Energy.

STX Engine and several other Korean firms will join hands with Greece's Hydrus, Onex and other companies, and the Korean government will invest 4 billion won ($3.06 million) in the projects by 2026, it added.

The move came as the International Maritime Organization set a goal of reducing greenhouse gas emissions in the shipping sector by 50 percent by 2050 compared with 2008 levels.

"Korea secures advanced technologies in shipbuilding and engineering, and Greece owns the largest number of vessels in the world. This cooperation will present a new business model," First Vice Industry Minister Jang Young-jin said during a signing ceremony.

"Korea will continue to make efforts to enhance economic cooperation with Greece in various related fields, such as digital, energy and green industry sectors," it added.

Global demand has surged for eco-friendly ships amid strong environmental regulations for net-zero goals. Some 5.5 percent of the vessels currently in operation around the world adopt clean fuels, according to the ministry.

YONHAP