HANWHA GROUP TO ACQUIRE HSD ENGINE

Hanwha Group has announced that it has entered into an agreement to acquire a 33% stake in HSD Engine, the Korean engine builder, and intends to acquire the engine builder in the third quarter of 2023

The deal to acquire a 33% stake in HSD Engine was announced on 16 February 2023.

Hanwha Group plans to acquire HSD Engine Co. Ltd. in Korea by the third quarter of 2023, creating a vertically integrated group including DSME.

The Korean conglomerate added that it planned to begin due diligence before signing a follow-on agreement to fully acquire the engine builder in April 2023. The Korean group noted that it aimed to conclude the due diligence and receive regulatory approvals in the first half of 2023, before concluding the acquisition in the second half of 2023.

The deal will create a vertically integrated manufacturing group. Hanwha Group acquired the Korean shipyard Daewoo Shipbuilding & Marine Engineering (DSME) in 2022.

The vertical integration offered specific advantages in the area of producing engines capable of operating on alternative fuels. Hanwha’s subsidiaries PSM and Thomassen have expertise in hydrogen injection and combustion in the stationary gas turbine market. The company noted that by combining this expertise with the engine manufacturing capabilities of HSD engines, the company will begin producing engines that use eco-friendly fuels such as ammonia and hydrogen.

HSD Engine has existing experience with the development of engines capable of operating on methanol. HSD Engine signed a joint development project with WinGD in September 2022 to deliver an engine capable of running on methanol by 2024.

The deal is also expected to strengthen DSME’s project delivery and cost management competences, and extend vessel maintenance capabilities.

In a statement, a Hanwha official commented, “We plan to continue investing in future growth engines and core competencies by combining HSD engine manufacturing technology with Daewoo Shipbuilding & Marine to strengthen high-value-added businesses such as eco-friendly engine ship manufacturing, and create synergies through collaboration with various affiliates.”

Berge Bulk inline shaft generator retrofit completed

The first retrofit installation of an inline shaft generator has been completed alongside the installation of an air lubrication system aboard Berge Bulk’s Capesize carrier, Berge Toubkal

The Berge Toubkal retrofit was completed in Q4 2022, following ten months of preparation time.

The successful installation of the large inline shaft generator system by Wärtsilä is the first in the marine sector. Shaft generator system, also referred to as Power Take-Off (PTO) systems, are standard installations on newbuild vessels but have not previously been retrofitted to existing vessels in the fleet.

The system includes a Wärtsilä control system, as well as a converter to allow the generator to operate over a broad span of rpm. The existing intermediate shaft and bearings were replaced to accommodate the increased weight of the generator sitting directly on the propeller shaft. The retrofitted shaft generator will also provide power to a Silverstream air lubrication system installed at the same time.

The installation will improve the vessel’s Energy Efficiency Existing Ship Index (EEXI) while reducing overall carbon footprint.

“Berge Bulk made an industry commitment to go carbon neutral well

8 Hanwha Group plans to acquire HSD Engine Co. Ltd. in Korea by the third quarter of 2023, creating a vertically integrated group including DSME before the IMO’s plan, and we are installing now the latest fuel-saving technologies, like shaft generators, air lubrication, or wind propulsion on our vessels,” says Paolo Tonon, Berge Bulk’s Technical Director, “Wärtsilä has a proven track record and is one of the market leaders in shaft generator systems and electrical integration.”

“Berge Bulk is one of the front runners in shipping’s transition to decarbonised operations, and we are proud to support them in this. Wärtsilä is actively working on the development of new technologies that can be integrated into existing vessel systems to make their operations cleaner and more economical,” says Torsten Büssow, Director for Ship Electrification at Wärtsilä.

Wärtsilä has successfully delivered more than 650 shaft generator systems and has over 50 years of experience in this field.