POSCO, Hanwha Ocean Seek to Use High-Manganese Steel in LNG Carrier Cargo Tanks

MOU Signed to Secure Demonstration Vessel with High-Manganese Steel Cargo Tanks
Safety and Durability to Be Verified in Real-World Operations
Reduce Reliance on Foreign Technology and Strengthen Cost Competitiveness

POSCO and Hanwha Ocean are joining forces to apply domestically produced high-manganese steel to cargo tanks, a key component of liquefied natural gas (LNG) carriers. The companies aim to commercialize domestically produced material in an LNG cargo tank market that has long relied on foreign technology.

Company officials from both sides, including Hanwha Ocean CEO Kim Heecheol (fifth from left) and POSCO President Lee Heegeun (sixth from left), pose for a commemorative photo at a ceremony on the 15th to sign an MOU to secure a demonstration vessel with high-manganese steel cargo tanks at Hanwha Ocean's Geoje Shipyard. POSCO

POSCO said on October 15 that it had signed a memorandum of understanding (MOU) with Hanwha Ocean to secure a demonstration vessel equipped with high-manganese steel cargo tanks. The signing ceremony was attended by POSCO President Lee Heegeun and Hanwha Ocean CEO Kim Heecheol, among others.

The two companies plan to build a demonstration vessel fitted with high-manganese steel cargo tanks and verify their safety, durability, and operational efficiency under real-world operating conditions. The project will help them establish an operating track record to present to overseas shipowners and lay the groundwork for commercialization. POSCO International and POSCO Flow will also support the vessel's acquisition and operation.

High-manganese steel is a specialty steel developed independently by POSCO. It maintains its strength and resistance to impact even in extremely low-temperature environments below minus 163 degrees Celsius. Compared with the expensive nickel-alloy steel primarily used in existing LNG cargo tanks, it is more readily sourced, giving it a competitive edge in cost reduction and supply stability.

The collaboration is significant because it will expand the use of high-manganese steel from fuel tanks on LNG-powered vessels to the large cargo tanks of LNG carriers. About 1,000 tons of the material are used for the fuel tank of each vessel, while LNG carrier cargo tanks require more than 10,000 tons. Successful commercialization is therefore expected to significantly increase demand for high-manganese steel.

POSCO said high-manganese steel cargo tanks can withstand sloshing, the movement of LNG that causes impact against the tank walls. The tanks can also be built separately and then installed on the vessel, shortening construction time.

POSCO and Hanwha Ocean have worked together for more than a decade to apply high-manganese steel to ships. In 2021, Hanwha Ocean also used the material in the LNG fuel tanks of a very large crude carrier and a container ship it built. As of this year, a total of 51 vessels have used high-manganese steel in LNG fuel tanks and other applications.

The companies plan to extend its use to LNG bunkering vessels and floating storage and regasification units (FSRUs), and to broaden its application to the transport of various low-temperature cargoes, including hydrogen, ethane, and ammonia.

"Building on our high-manganese steel technology, we will lead the global standard for materials used in eco-friendly vessels, including LNG cargo tanks," said Lee Heegeun, president of POSCO. Hanwha Ocean CEO Kim Heecheol said, "By combining the two companies' technological capabilities, we will develop cargo tanks that offer both safety and economic efficiency and expand their application to a range of low-temperature cargo transport sectors."

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