▲ This photo provided by Daewoo Shipbuilding & Marine Engineering Co. (DSME) on Aug. 30, 2022, shows DSME CEO Park Doo-sun (L) posing with HSD Engine President Koh Young-youl (C) and Samsung Heavy Industries CEO Jung Jin-taek after signing a business tieup deal at a hotel in Changwon on the south coast a day earlier. (PHOTO NOT FOR SALE) (Yonhap)

DSME-biz tieup

DSME inks deal on eco-friendly ship engine development

SEOUL, Aug. 30 (Yonhap) -- South Korean shipyard Daewoo Shipbuilding & Marine Engineering Co. (DSME) said Tuesday it has signed a business tieup agreement with two local firms on the joint development of next-generation, eco-friendly ship engines.

The memorandum of understanding, which was signed with rival Samsung Heavy Industries Co. and ship engine maker HSD Engine a day earlier, calls mainly for joint research on the development of environmentally-friendly engines and other equipment, DSME said.

The three companies will also push for operating joint projects, promoting personnel exchanges and seek other business areas of cooperation, it added.

The MOU comes amid toughening environmental regulations around the globe, which focus on reducing carbon emissions to mitigate global warming and climate change.

Market watchers said there is an urgent need to develop next-generation, eco-friendly ship engines, though large vessels have been increasingly powered by liquefied natural gas (LNG) rather than fossil fuels.

In an effort to meet strengthened environmental requirements, domestic and foreign shipbuilding companies have been ramping up efforts to develop new engines powered by alternative fuels such as methanol, ammonia and hydrogen.

DSME, the world's No. 4 shipbuilder by order backlog, has been faring well this year on the back of brisk demand for LNG carriers. So far this year, DSME has clinched orders worth $6.43 billion, nearly 72 percent of its yearly order target of $8.9 billion.

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