HD Hyundai clinches $37M shaft generator system order from Middle Eastern firm

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HD Hyundai clinches $37M shaft generator system order from Middle Eastern firm

Published: 22 Sep. 2024, 16:55 Updated: 22 Sep. 2024, 19:25

LEE JAE-LIM
lee.jaelim@joongang.co.kr

A render of a generator for the shaft generator system that HD Hyundai Marine Solution plans to supply [HD HYUNDAI MARINE SOLUTION]

HD Hyundai Marine Solution, the aftermarket subsidiary of HD Hyundai, secured a $37 million deal to supply shaft generator systems for 17 liquefied natural gas (LNG) carriers for a Middle Eastern shipping company.

A shaft generator system generates electricity by utilizing part of the rotational power of the main propulsion engine from ships. It is gaining attention as an eco-friendly ship power generation unit, as it helps to improve the Energy Efficiency Design Index (EEDI) and Carbon Intensity Index (CII), regulations which are increasingly becoming strictly enforced by the International Maritime Organization (IMO).

The market size of shaft generator systems is forecast to annually grow 6.85 percent to $365.8 million in 2028, up from $245.8 million in 2022, according to market researcher Business Research Insight. It is anticipated to see sharper growth as global regulations to reduce greenhouse gas emissions take full effect after 2030.

The ship service provider marked shaft generator systems as one of its new growth factors since 2020 as it aimed to diversify its key business portfolios. This year, it clinched supply orders for 21 ships, including this deal, compared to four in 2021.

The company touts this large-scale order as particularly significant for receiving approval from a Middle Eastern shipping company, known for being conservative in its choice of onboard equipment and for strict quality standards.

“HD Hyundai Marine Solution was highly rated for its generator and variable frequency drive, main components of shaft generator systems,” the company spokesperson said in a statement. “With the tightening of carbon emission regulations, the demand for retrofitting ships with shaft generator systems is also expected to increase. With our competitive edge in this realm, we plan to expand related orders.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]