South Korean Shipbuilders Increase Orders in Growing Ammonia Carrier Market

The market for very large ammonia carriers (VLAC) is rapidly growing, with South Korea’s major shipbuilders, including KSOE, Hanwha Ocean, and Samsung Heavy Industries, receiving additional orders for these vessels. Analysts project rapid growth for VLACs as ammonia power technologies become commercially available, with ammonia expected to become one of the leading alternative fuels due to its ability to burn without CO2 emissions and its suitability as a carrier for hydrogen.

Shipowners and operators are preparing for the anticipated market by ordering some of the first large vessels for the sector. KSOE reported receiving a further order for three VLACs valued at $367 million, while Hanwha Ocean received an order for two VLACs valued at approximately $247 million. Samsung Heavy Industries also entered the market for VLACs with a $240 million order for two LPG/ammonia carriers.

South Korea’s shipbuilders are leveraging their experience with LNG and other gas carriers to develop the new market for large ammonia carriers, aiming to build a leadership position in this emerging sector. Despite competition, South Korean shipbuilders still command about 70 percent of the LNG carrier orders and are seeking to do the same with new technologies, including ammonia. The vessels are expected to be delivered by the second half of 2027, with the market for VLACs projected to grow rapidly as ammonia power technologies become commercially available.

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