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Released September 19, 2024 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--With shippers carrying the bulk of globally traded goods, the maritime industry continues to do its part in the energy transition by starting to build up a hydrogen supply chain, engineering firm McDermott (Houston, Texas) said.

McDermott subsidiary CB&I (Houston) reached an "approval in principle" agreement on the design of a cargo containment system and a liquid hydrogen carrier from shipping certification company DNV (Oslo, Norway).

The ship will have a storage capacity similar to that of a Long-Range (LR) class vessel, which can carry about a half-million barrels of light, sweet crude oil.

Mark Butts, a senior vice president at CB&I, said the volume supports the emerging hydrogen industry.

"This carrier makes plans for international liquid hydrogen supply chains possible today," he said Wednesday.

Hydrogen is the most abundant element in the universe and an extremely potent energy carrier. It's usually associated with compounds such as water--two hydrogens and one oxygen--or methane--four hydrogens and one carbon. Liquid hydrogen is commonly used, meanwhile, as rocket fuel or in fuel cells.

Making hydrogen is complex, however. The most common form used today uses natural gas as a feedstock, while other forms can split water apart to get the hydrogen. As a fuel, meanwhile, the liquefaction processes can be complex.

McDermott and its partners, including Korean shipbuilder Hanwha Ocean (Geoje) and DNV, said they're up to the challenge.

"Collaboration has always been a key to overcoming new challenges," said Vidar Dolonen, a DNV manager overseeing operations in South Korea and Japan. "We are now witnessing an exemplary scene of cooperation where two global leaders in hydrogen and shipbuilding sectors work together closely to realize the shipping of liquid hydrogen, the future medium of renewable energy."

Apart from carrying hydrogen, shippers are at the forefront of the energy transition as nearly every product imaginable is carried on a vessel at some point along the supply chain.

Working to clean up their own industry, shippers under protocols outlined by the U.N.-backed International Maritime Organization (IMO) are using alternative fuels such as liquified natural gas to power their own voyages.

Elsewhere, a Norwegian energy major is working with shipping company Eidesvik Offshore (Bomlo, Norway) to convert the supply vessel Viking Energy to run on ammonia.

Ammonia, made up of four hydrogen atoms and one nitrogen, is a main component of fertilizers for the agriculture sector. It's also finding a home in transportation because of its chemical make-up. Rich in hydrogen, but with no carbon atoms, ammonia is essentially a zero-carbon fuel.

Multinational energy trader Vitol added that it was on pace to cut its carbon emissions 40%, compared to 2008 levels, this year. Utilizing a wide range of cleaner alternatives, the company said that no single fuel can decarbonize the shipping industry.

McDermott offered no information on a potential start of construction for the new carrier.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
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