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Enhancement Measures for the Supply of Eco-friendly Vessels in 2023

  • Date

    2023.03.08.

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    942

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- Investing roughly KRW 362.3 billion to build 69 new vessels and to revamp the facilities for 322 vessels -

 

 The Ministry of Oceans and Fisheries (Minister CHO Seung-Hwan) announced that it has rolled out the 2023 Implementation Plan on the Supply of Eco-friendly Vessels on January 30th, which was established in line with the 1st Master Plan on the Development and Supply of Eco-friendly Vessels (2021-2030).

 

 The Korean government has established the 1st Master Plan on the Development and Supply of Eco-friendly Vessels in 2020 with the aim of promoting the development and supply of eco-friendly ships and prepares the implementation plan for development and supply on an annual basis to ensure systematic implementation of the master plan. A total investment of KRW 362.3 billion is expected from central and regional government offices and public institutions for the supply of eco-friendly vessels.

 

 First, the public sector will actively provide support for the supply of eco-friendly vessels with a budget of about KRW 311.9 billion by constructing a total of 46 new eco-friendly vessels, including 30 hybrid fuel-based ships and 7 LNG-based ships, and by installing eco-friendly equipment, such as Diesel Particulate Filters, on 20 ships. In addition, the government will lead new technological support programs, including the designing of optimized model ships by each vessel type or applicable green technology, which would in turn reduce the time and the budget required for the production of the ships.

 

 Moreover, the Ministry continues to support the introduction of eco-friendly vessels in the private sector. A total budget of approximately KRW 34.7 billion will be invested to facilitate the production of 14 new eco-friendly vessels and the installation of green equipment on 302 ships, where up to 10 to 30% of vessel prices are to be subsidized for new construction, while offering subsidies and partial payments on interest for installation of the eco-friendly equipment.

 

 The Ministry will also work towards expanding the supply base of green energy sources, including LNG and electricity. Through a new R&D project, the technology to enable simultaneous processing of LNG bunkering and cargo unloading and the relevant safety standards are to be developed. In addition, electric passenger and cargo ships embedded with mobile power supply systems will be tested to verify their practical feasibility, while onshore power supply facilities will be constructed at the Ulsan Port and Yeosu Gwangyang Port to allow hybrid ships to recharge.

 

 Furthermore, to become a leader in the international eco-friendly vessel market, the Ministry will support the commercialization of new domestic technologies and the creation of international standards. A system will be built to expand the target scope of the National Eco-Friendly Vessel Certification System to include equipment and facilities on top of the previous scope that applied only to vessels. Laws and regulations involving the performance and safety standards of new technologies are to be established, together with strategies to make them the new international standards, to support the entry of Korean businesses into global markets.

 

 In parallel, training programs and immersive equipment using virtual reality (VR) technologies will be produced for the development of eco-ship professionals. Regarding small hydrogen fueled vessels, the development of safety standards for their actual operation and technologies for onshore digital monitoring will continue.

 

 More details about the 2023 Implementation Plan on the Supply of Eco-friendly Vessels can be found on the Ministry of Oceans and Fisheries website (www.mof.go.kr), under Newsroom - Notices.

 

 Director General Hong Jong-Wook, the Head of the Maritime Affairs and Safety Policy Bureau at the Ministry of Oceans and Fisheries reaffirmed the Ministry’s commitment by explaining, “in line with the global trend of decarbonization of the shipping sector, the implementation plan will be actively rolled out to ensure the effective supply of eco-friendly vessels.”