Hanwha and Baker Hughes Enter into Joint Development Agreement for Ammonia Gas Turbines
Rhea-AI Summary
Hanwha Power Systems and Hanwha Ocean have signed a Joint Development and Collaboration Agreement with Baker Hughes (NASDAQ: BKR) to design and produce low carbon ammonia gas turbines. The collaboration aims to develop turbines capable of 100% ammonia combustion and dual fuel operation with natural gas-ammonia blend.
The project builds on Baker Hughes' proven small-size turbine technology and PSM's newly-developed ammonia combustion system. Hanwha Group plans to complete the development of LNG carriers and container ships using this ammonia gas turbine propulsion system by 2028. In September 2023, the companies received approval in principle from ABS for applying ammonia gas turbines to LNG carriers.
PSM completed initial high-pressure ammonia combustion testing and Baker Hughes finished turbine feasibility studies in 2024. The initiative supports Hanwha Group's vision, announced at Davos Forum, to create the world's first fossil fuel-free ship.
AI-generated analysis. Not financial advice.
Positive
- Development of innovative 100% ammonia-powered turbine technology for marine applications
- Strategic partnership with major energy technology company Baker Hughes
- Received ABS approval in principle for ammonia gas turbines in LNG carriers
- Successful completion of initial high-pressure ammonia combustion tests
- MOU signed with major European LNG carrier shipping company for propulsion system conversion
Negative
- Technology still in development phase with completion targeted for 2028
- Requires significant R&D investment and testing before commercial deployment
News Market Reaction – BKR
On the day this news was published, BKR gained 2.64%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Hanwha Power Systems and Hanwha Ocean cooperate with global energy technology company Baker Hughes.
- Leading the decarbonization of the hard-to-abate marine transportation sector through fuel-flexible combustion technology.
Hanwha Group declared its vision for the world's first fossil fuel-free ship at the Davos Forum held in
The ammonia gas turbine to be developed through this collaboration will be based upon the proven, small-size world class turbine technology of Baker Hughes, and a newly-developed ammonia combustion system created by PSM, a US-based Hanwha subsidiary. The gas turbine will be capable of
PSM successfully completed an initial high-pressure ammonia combustion test campaign and Baker Hughes completed its initial turbine feasibility studies in 2024. In addition, Hanwha Power Systems signed a memorandum of understanding (MOU) at Gastech 2024 in
Through this joint development agreement, Hanwha plans to expand technological cooperation with the goal of developing the world's first completely carbon-free ship and provide innovative solutions that lead the era of fossil fuel elimination.
Executive Director Kim Hyeong-seok, head of Hanwha Power Systems' Marine Solutions Business Department, said, "The paradigm of switching to lower carbon fuel for ships is the calling of the times, and Hanwha Power Systems will continue to lead the development of innovative technologies for the entire life cycle of eco-friendly ships."
"This collaborative development of a low-carbon ammonia gas turbine will be a significant turning point in the global shipbuilding and shipping industry, accelerating the transition to eco-friendly fuel propulsion for ships," said Son Young-chang, vice president and head of Hanwha Ocean's Product Strategy Technology Institute.
Baker Hughes is a global energy technology company operating in more than 120 countries around the world, with a unique strength in small and medium-sized gas turbine technology. The synergy between the two companies is highly anticipated.
About Hanwha Power Systems
Hanwha Power Systems is a global leader in eco-friendly energy equipment and provides the highest quality products and services by possessing the original technology for the design and production of high-speed rotating equipment. In addition to our
About Hanwha Ocean
Hanwha Ocean is a leading global company with extensive expertise and experience in the shipbuilding and offshore industry. Boasting the world's most competitive LNG carriers built with eco-friendly and highly efficient technology, the company has continuously pioneered new businesses since 1973, producing a vast range of vessels, including commercial ships, drill ships, and warships. Hanwha Ocean will be at the forefront of pioneering advanced marine solutions for decarbonization and further expand Hanwha's green energy ecosystem to create positive, sustainable change worldwide. More information about Hanwha Ocean is available at www.hanwhaocean.com.
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SOURCE Hanwha Power Systems