High-Stakes Bet: After the "LNG Carrier Legend," Liquefied Hydrogen Is Next... Busan Aims to Dominate the Global Maritime Hydrogen Market

Busan Poised to Build Cutting-Edge Liquefied Hydrogen Carriers


Shipbuilding and Ports Join Forces to Create Hydrogen Maritime Network


Hydrogen Ship Technology Center at Pusan National University Leads Demonstration Project

Having long dominated the global market with LNG carriers, Korea’s shipbuilding industry is now targeting a new frontier: liquefied hydrogen carriers. The sector is writing the opening chapter of the future hydrogen vessel era, encompassing hydrogen engines, hydrogen fuel cells, and maritime hydrogen transport.

In Busan, the Hydrogen Ship Technology Center at Pusan National University is leading efforts in ship development and the localization of key components, laying the groundwork to secure an edge in the next-generation maritime hydrogen transport market.

Liquefied hydrogen is produced by cooling gaseous hydrogen to minus 253°C, drastically reducing its volume before transportation. The Ministry of Trade, Industry and Energy aims to respond to rising global demand for hydrogen transport by securing large-scale liquefied hydrogen carrier technology at an early stage, followed by constructing a demonstration vessel by 2027 and verifying its technical stability and safety through operation.

At the center of these efforts in Busan is the Hydrogen Ship Technology Center at Pusan National University. Since 2024, the center has been leading the nation's first national project to demonstrate the commercialization of a liquefied hydrogen carrier, under the supervision of the Ministry of Trade, Industry and Energy. Lately, collaboration frameworks have been established with organizations such as Lloyd's Register and HMM, not only advancing ship technology development but also building the foundation for commercialization by taking international certification and real-world operations into account.

Image of the liquefied hydrogen carrier ship 'Hydro Ocean K'.

The liquefied hydrogen carrier under development, "Hydro Ocean K," is being designed as a hybrid vessel utilizing both hydrogen engines and fuel cells. The ship design is complete, and the production of the liquefied hydrogen cargo tank is about to begin. Related shipbuilding and equipment companies are preparing to enter the market by developing and demonstrating components necessary for liquefied hydrogen storage and transport.

The main challenge lies in connecting technological advancement to actual ship construction and operation. As there are no large commercial liquefied hydrogen carriers yet, relying solely on design technology is not sufficient to secure market share. Building and operating actual vessels to gain a “track record” in technology and safety validation is seen as a critical factor in future contract competition.

This issue was a central topic at the “Liquefied Hydrogen (LH2) Transportation and Future Marine Capital Busan Food Industry Strategy Seminar” hosted by the Busan Metropolitan Council on the 14th. Stakeholders from the Hydrogen Ship Technology Center at Pusan National University, the Korea Institute for Advancement of Technology, HMM, HD Hyundai Heavy Industries, and the Korea Research Institute of Ship & Ocean Engineering all stressed the need for rapid construction and demonstration of liquefied hydrogen carriers.

Byungyong Yoo, Senior Vice President at HD Hyundai Heavy Industries, stated, “Securing a proven track record through actual liquefied hydrogen carrier construction is the most critical task right now, and through this, we must build a global eco-friendly energy network.”

Yeongseon Kim, Senior Vice President at HMM, also pointed out, “In the early days of the LNG carrier industry, there were concerns from overseas about Korea’s operational capabilities, but continued experience has led to our current competitiveness. For liquefied hydrogen as well, early-stage demonstration and the accumulation of real-world experience are of utmost importance.”

Conceptual diagram of Busan New Port Eco-friendly Integrated Energy Terminal.

The focus on Busan is not limited to vessel technology alone. To import liquefied hydrogen into Korea, a maritime supply chain is needed, connecting liquefaction and transportation from the production site to storage and distribution domestically. By building both ship and port infrastructure around Busan Port, it is possible to integrate the shipbuilding, shipping, port, and equipment industries into a unified ecosystem.

In July, the Ministry of Oceans and Fisheries expanded the LNG bunkering site at Busan New Port into an eco-friendly integrated energy terminal handling LNG, hydrogen, and ammonia. When liquefied hydrogen carriers are connected to such composite energy terminals, Busan Port could become a maritime supply hub for next-generation eco-friendly energies, including hydrogen.

The market outlook is also promising. The Ministry of Trade, Industry and Energy projects that domestic hydrogen demand will rise from 3.9 million tons in 2030 to 27.9 million tons in 2050, with a considerable portion expected to be imported. Liquefied hydrogen carriers are one of the key options for bringing in hydrogen produced overseas.

Busan, therefore, needs more than a single ship. An industrial base including core components such as liquefied hydrogen cargo tanks, ultra-low temperature pumps, insulation systems, and transfer pipelines, as well as ship construction, operation, and port storage and distribution facilities, is necessary. The Hydrogen Ship Technology Center at Pusan National University has recently initiated field-oriented training in liquid hydrogen storage system materials and component performance evaluation, along with ultra-low temperature insulation design, to support such an industrial foundation.

The competition has already begun. In Japan, Kawasaki Heavy Industries is leading the establishment of a liquefied hydrogen supply chain centered on Kobe Port, while in France, companies with LNG cargo tank expertise are working to secure liquefied hydrogen storage technology. In Korea, leveraging world-class shipbuilding competitiveness for liquefied hydrogen vessel technology is now a major challenge.

Scene from the seminar on liquefied hydrogen transportation and Busan's future maritime capital food industry strategy held on the 14th.

Heesoo Lee, Program Director at the Korea Institute for Advancement of Technology, stressed the importance of leading liquefied hydrogen technology and securing global dominance to avoid repeating the “mistake” of paying billions of won in royalties overseas for LNG ship technology, emphasizing the need for active support from the government and local authorities.

Busan’s own challenges are clear. The ongoing liquefied hydrogen carrier project is not merely about ship construction but also about creating a demonstration stage where regional shipbuilding and equipment companies can enter new markets. For this, it is essential to proceed with planned shipbuilding without delay and to establish a system that supports equipment suppliers in applying their products to actual ships to build a proven track record.

Jaehoon Lee, Director at the Korea Research Institute of Ship & Ocean Engineering, commented, “For the large-scale entry and proliferation of the liquefied hydrogen industry, the rapid establishment of demonstration and certification infrastructure is urgent.”

Once constructed, liquefied hydrogen carriers are expected to be used in partnership with green hydrogen-producing countries such as the United States and the Middle East to import liquefied hydrogen into Korea. Whether Busan can link shipbuilding technology and port infrastructure to fully establish a maritime supply chain will determine Busan’s long-term standing in the hydrogen industry.

This content was produced with the assistance of AI translation services.