HD Hyundai Global Service, a subsidiary of the HD Hyundai Group, has signed a contract with Cool Company (CoolCo) to retrofit five of its LNG carriers with reliquefaction units, which is valued at $10 million per vessel. The device is used to re-liquefy the boiled off gas generated during the operation of LNG cargo tanks, thereby preventing natural evaporation using sub-cooled LNG. The retrofit aims to help the shipping company meet IMO GHG requirements by ensuring that their LNG carriers could deduct fuel consumption equivalent to the amount of power used in cargo reliquefaction equipment when calculating the ship’s Carbon Intensity Indicator (CII).
HD Hyundai Global Service plans to incorporate reliquefaction units supplied by Air Liquide, a French company, which specializes in this technology, to ensure the overall design, product supply, installation, and commissioning of the units. The retrofit of the sub-cooling units is a vital step towards achieving CoolCo’s ESG goals, leveraging its industry relationships to make further accretive acquisitions of in-service LNGCs, and pursuing newbuild opportunities.
Richard Tyrrell, CEO of CoolCo, stated that the reliquefaction units will provide the charterers with valuable flexibility in managing the seasonal fluctuations in LNG demand and will reduce the environmental footprint of what will become their LNGe vessels. CoolCo provides charterers and third-party LNG vessel owners with modern and flexible management and transportation solutions, delivering a lesser-emitting form of energy that supports decarbonisation efforts, economic growth, energy security, and improvements in the quality of life.
In conclusion, the retrofit aims to help shipping companies meet regulatory requirements while achieving their ESG goals and contributing to a cleaner environment. The contract with CoolCo is a significant opportunity for HD Hyundai Global Service to showcase its commitment to sustainable shipping.
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