Beyond the "world's number one shipbuilding company"! HD Hyundai aims for a rebirth at sea

2023-01-09 09:00

Since the official name change was announced, HD Hyundai Group (formerly Hyundai Heavy Industries Group) has been accelerating its transformation into a marine-focused company, aiming to become a "global top-tier shipbuilding and energy group" from its previous position as the "world's number one shipbuilding company."

"Turning the unknown ocean into our generation's Blue Frontier." On January 3, 2023, the day before the opening of CES 2023, the world's largest international consumer electronics show, HD Hyundai Group (formerly Hyundai Heavy Industries Group) held a press conference in Las Vegas, USA, unveiling its new vision called "Ocean Transformation."

HD Hyundai Group stated that achieving sustainable future development requires a fundamental shift in how we perceive and utilize the ocean. The group's "Ocean Transformation" initiative aims to view the ocean from a new perspective—as a treasure trove of resources, a logistics hub, and a mobile network center—and to position it as a central space for addressing global challenges such as climate change.

HD Hyundai Group plans to leverage its core business areas—shipbuilding, offshore engineering, energy, and industrial machinery—to produce eco-friendly energy, build a value chain for safe transportation and utilization via the ocean, and transform the ocean into a "sustainable, eco-friendly energy source."

HD Hyundai Group President Chung Ki-sun delivered the keynote speech at the press conference. He stated, "To solve urgent global issues facing humanity, such as the global energy crisis and climate change, we must utilize the limitless potential of the ocean. As a 'Future Builder,' HD Hyundai Group will lead the way in achieving historical expansion in human endeavors and sustainable development for future generations through a fundamental transformation of our understanding of the ocean."

Chung Ki-sun predicted, "The ocean has the potential to supply energy needs many times greater than what is currently available. Compared to limited land-based energy development, the ocean can provide more stable renewable energy. Considering potential resources, the value of major global ocean resources will far exceed $24 trillion."

It is reported that HD Hyundai Group's "Ocean Transformation" vision consists of four themes: "Ocean Mobility," related to the development of unmanned and eco-friendly vessels; "Ocean Wise," focused on optimizing maritime transportation networks; "Ocean Life," expanding living spaces to the ocean through technological advancements; and "Ocean Energy," building a sustainable ocean energy ecosystem.

Regarding "Ocean Mobility," HD Hyundai Group stated that it is developing future energy transport vessels, including the world's first 90,000-cubic-meter ammonia carrier powered by carbon-free ammonia fuel and the world's first 40,000-cubic-meter liquid hydrogen carrier. The group's AI-based autonomous navigation system for LNG fuel supply (Hi-GAS+), next-generation ship electric propulsion system (Hi-EPS), and autonomous navigation solution for leisure yachts (NeuBoat) also received CES 2023 Innovation Awards.

Sung Joon KIM, President of the Korea Shipbuilding & Marine Engineering Future Technology Research Institute, who presented the "Ocean Transformation" vision, stated, "From the shipbuilding stage, we are applying digital twin technology and promoting innovation centered on smart ships. HD Hyundai Group will lead the safe and efficient transportation of eco-friendly fuels such as hydrogen and ammonia by developing and building future ships equipped with unmanned and remote digital solutions."

Regarding "Ocean Wise," HD Hyundai Group stated that it will develop optimal efficiency and eco-friendly navigation plans from the time a contract is signed between the cargo owner and ship owner, using blockchain technology for administrative procedures and inspections. During autonomous navigation, cargo owners can check the ship's position, status, and arrival time in real-time, and a system is provided for calculating costs. Through remote diagnostics, information on ship malfunctions and necessary parts during navigation is shared, allowing for advance quotation and repair scheduling, parts supply, and consideration of destination port conditions, continuously adjusting routes and speeds to reduce unnecessary fuel consumption and carbon emissions.

HD Hyundai Group stated that if "Ocean Wise" optimizes ocean transportation, it is estimated that savings of tens of billions of dollars could be achieved by applying it to just 5% of the global fleet. Overall, it is expected that global shipping capacity could increase by up to 10%, bringing about a groundbreaking turning point for the human economy.

Regarding "Ocean Life," Carl Johansson, Director of Technology Business and New Business at Avikus, HD Hyundai Group's autonomous navigation vessel solution subsidiary, pointed out that the way we experience the ocean has changed through the "Neuboat" autonomous navigation solution for leisure yachts. He stated, "Avikus's autonomous navigation solution for leisure yachts, the Neuboat smart ocean leisure platform, will fundamentally change how individuals experience the sea."

Regarding "Ocean Energy," Kim Yuri, a researcher at the Korea Shipbuilding & Marine Engineering, presented a future ocean blueprint utilizing next-generation energy sources such as fuel cells, small modular reactor (SMR) molten salt reactors, and offshore wind power. She stated that Korea is building a new floating offshore wind farm with a planned generation capacity of 1.5 GW (gigawatts), emphasizing, "Considering that the largest offshore wind farm currently has a generation capacity of only 88 MW (megawatts), this is a massive leap."

On the same day, executives from Palantier, a US big data company collaborating with HD Hyundai Group to build a smart shipyard, and GE Offshore Wind, a partner in offshore wind power projects, also attended the meeting and presented their cooperation plans for the ocean transformation blueprint. Shyam Sankar, COO of Palantier, stated, "Two companies with the world's highest technological capabilities will continue to work closely together for sustainable development." Jan Kjaersgaard, CEO of GE Offshore Wind, stated, "The offshore wind power that HD Hyundai Group focuses on is not only a carbon-free renewable energy source, but also a future energy source that can provide stable energy to the approximately 40% of the global population living in coastal areas. The two companies will build the most economical and environmentally friendly hydrogen production equipment through technological cooperation."

HD Hyundai Group officials stated, "Following our participation in CES 2022 last year, we will showcase our blueprint and technological capabilities on a global stage this year as well. Through our participation in CES 2023, HD Hyundai Group will actively explore new business opportunities through collaboration with leading global companies in various fields."

It is reported that at the beginning of 2020, Hyundai Heavy Industries Group proposed the idea of "transforming into the world's most advanced shipbuilding and energy group to meet the challenges of the digital transformation era." The plan was to use technological innovation to combine cutting-edge technologies such as 5G, AI, and big data across numerous business areas, including smart ships and smart robots, to be reborn as the world's most advanced shipbuilding and energy group. Last January, Chung Ki-sun announced at CES 2022, "Hyundai Heavy Industries Group will surpass its position as the 'world's number one shipbuilding company' to become a comprehensive heavy industry group that creates future value and possesses the most advanced technology in its three core businesses: shipbuilding & offshore engineering, energy, and machinery."

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