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

The Korean shipbuilding industry, which has long dominated the global market with LNG carriers, is now targeting a new market: liquefied hydrogen carriers. This marks the prelude to the future mythology of hydrogen-powered ships, encompassing so-called 'hydrogen engines', 'hydrogen fuel cells', and maritime hydrogen transport.

In Busan, the Hydrogen Ship Technology Center at Pusan National University is spearheading the development of vessels and the localization of core equipment, laying the groundwork to secure a leading position in the next-generation maritime hydrogen transportation market.

Liquefied hydrogen is produced by cooling gaseous hydrogen to minus 253 degrees Celsius, significantly reducing its volume for transportation. The Ministry of Trade, Industry and Energy aims to respond to growing global demand for hydrogen transport by securing large-scale liquefied hydrogen carrier technology at an early stage, with plans to build demonstration ships by 2029 and verify the technology and safety through operational deployment.

At the heart of Busan’s efforts is the Hydrogen Ship Technology Center at Pusan National University. Since 2024, the Center has been overseeing the first-ever national project for commercializing liquefied hydrogen carriers under the industry ministry. Recently, the Center has also established partnerships with Lloyd’s Register and HMM, aiming not only to develop ship technologies but also to set up a foundation for commercialization, considering international certification and practical operations.

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

The liquefied hydrogen carrier currently under development, 'Hydro Ocean K', is being designed as a hybrid propulsion vessel utilizing both hydrogen engines and fuel cells. The vessel design has been completed, and construction of the liquefied hydrogen cargo tank is set to begin. Related shipbuilding and equipment companies are also preparing to enter the market by developing and validating essential components for liquefied hydrogen storage and transportation.

The challenge lies in connecting technology development to the actual construction and operation of vessels. As there are currently no large-scale commercial liquefied hydrogen carriers in operation, it is difficult to capture the market with design technology alone. Establishing a solid 'track record' by building and operating actual vessels and verifying their technology and safety will be a critical factor in future contract competitions.

This issue was a focal point at the “Seminar on Liquefied Hydrogen (LH2) Transport and Future Maritime Industry Strategies for Busan,” hosted by the Busan Metropolitan Council on the 14th. Representatives from the Hydrogen Ship Technology Center at Pusan National University, Korea Institute for Advancement of Technology, HMM, HD Korea Shipbuilding & Offshore Engineering, and Korea Research Institute of Ship & Ocean Engineering all stressed the need for prompt construction and demonstration of liquefied hydrogen carriers.

Byungyong Yoo, Senior Managing Director at HD Korea Shipbuilding & Offshore Engineering, stated, "Securing a track record through the practical construction of liquefied hydrogen carriers is the most important step at this point, and this will enable us to establish a global eco-friendly energy network."

Youngsun Kim, Senior Managing Director at HMM, added, "In the early stages of the LNG carrier industry, there were concerns overseas about our domestic operational capabilities, but through sustained operational experience, we built our current competitiveness. The same applies to liquefied hydrogen—early demonstration and accumulation of experience are absolutely essential."

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

The reason Busan is attracting attention lies not just in the vessels themselves. To import liquefied hydrogen into Korea, a maritime supply chain connecting liquefaction at production sites, transportation, storage, and supply facilities is necessary. By developing both ships and port infrastructure centered on the Port of Busan, it is possible to unite the shipbuilding, shipping, port, and equipment industries into a cohesive ecosystem.

In July, the Ministry of Oceans and Fisheries expanded the Busan New Port LNG bunkering site into an eco-friendly integrated energy terminal handling LNG, hydrogen, ammonia, and more. Connecting liquefied hydrogen carriers to such integrated energy terminals would prepare the Port of Busan to become a maritime supply hub for next-generation green energy, including hydrogen.

The market outlook is also promising. The Ministry of Trade, Industry and Energy projects domestic hydrogen demand will rise from 3.9 million tons in 2030 to 27.9 million tons by 2050, with a significant proportion of this volume expected to be imported. Liquefied hydrogen carriers are set to be one of the core means of bringing hydrogen produced overseas into Korea.

This means Busan needs more than just a single vessel. What is required is an industrial base encompassing everything from core equipment such as liquefied hydrogen cargo tanks, ultra-low temperature pumps, and insulation systems, as well as transfer piping, to ship construction and operation, and port storage and supply facilities. Pusan National University's Hydrogen Ship Technology Center has recently been providing on-site training in liquid hydrogen storage system materials and equipment performance assessment, as well as cryogenic insulation design, all of which are efforts to support this industrial foundation.

Competition is already underway. In Japan, Kawasaki Heavy Industries is leading the development of a liquefied hydrogen supply chain at Kobe Port, while in France, companies with LNG cargo tank technology are focusing on securing liquefied hydrogen storage technologies. In Korea, the task is to carry forward the country's world-class shipbuilding competitiveness into technology leadership in liquefied hydrogen vessels.

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

Heesu Lee, Program Director at the Korea Institute for Advancement of Technology, emphasized, "Securing leadership in liquefied hydrogen technology and global supremacy is crucial to avoid repeating the LNG carrier industry’s mistake of paying billions of won in royalties overseas." He stressed the need for support from both the government and local authorities.

The challenge for Busan is also clear. The current liquefied hydrogen carrier project is not just about building ships; it is significant as a demonstration platform for local shipbuilding and equipment companies to enter new markets. To achieve this, it is necessary to smoothly carry out the planned shipbuilding schedule and create a system so equipment companies can apply their products to actual ships and build their track records.

Jaehoon Lee, Director at Korea Research Institute of Ship & Ocean Engineering, noted, "To enable full-scale entry and expansion of the liquefied hydrogen industry, it is urgent to establish verification and certification infrastructure as soon as possible."

After construction, liquefied hydrogen carriers are expected to be used to import liquefied hydrogen from green hydrogen producing countries such as the United States and those in the Middle East. Whether Busan can connect its shipbuilding technology and port infrastructure to successfully establish a complete supply chain will determine its status in the future hydrogen industry.

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