POSCO is expanding the application of its independently developed high-manganese steel from liquefied natural gas (LNG) fuel tanks to large LNG carriers' cargo tanks. To achieve this, the company plans to collaborate with Hanwha Ocean to secure a prototype for commercialization.
On October 15, POSCO announced that it signed a memorandum of understanding (MOU) for securing a prototype of high-manganese steel cargo tanks at Hanwha Ocean's Geoje facility, with POSCO President Lee Hee-keun and Hanwha Ocean CEO Kim Hee-cheol in attendance. POSCO International and POSCO Flow are also participating in the collaboration to support the prototype acquisition and operation.
The two companies will construct a prototype vessel equipped with high-manganese steel cargo tanks, verifying safety, durability, and operational efficiency in real-world sailing conditions. This initiative aims to establish a track record for high-manganese steel cargo tanks and promote commercialization to global shipowners.
High-manganese steel is a specialized material developed to maintain high strength and impact toughness in ultra-low temperature environments below minus 163 degrees Celsius. POSCO explains that by utilizing manganese, which is relatively cheaper than the nickel alloy steel (INVAR) commonly used in existing LNG cargo tanks, it can reduce cost burdens and enhance material supply stability.
This collaboration is significant as it expands the application of high-manganese steel from LNG fuel tanks, which use about 1,000 tons of material per ship, to cargo tanks that store large quantities of LNG, requiring over 10,000 tons.
The high-manganese steel cargo tank is designed to regulate the boil-off gas ratio (BOR) generated during LNG storage. Additionally, it can withstand sloshing effects, where liquid cargo moves and impacts the tank walls, due to its high structural rigidity. The independent structure of the cargo tank allows for separate manufacturing and installation on the vessel, reducing construction time compared to existing methods.
POSCO has been working to expand the application of high-manganese steel. After applying it to the Gwangyang LNG Terminal's fifth facility in 2019, it was also used in Hanwha Ocean's ultra-large crude carriers and container ships' LNG fuel tanks in 2021. To date, a total of 51 vessels have been equipped with high-manganese steel.
POSCO Group plans to leverage its material development capabilities, along with POSCO International's LNG trading and terminal operations and POSCO Flow's logistics expertise, for this project. In the future, it aims to expand the application to LNG bunkering vessels and floating storage and regasification units (FSRUs), as well as enter various low-temperature cargo transportation sectors, including hydrogen, ethane, and ammonia.
Lee Hee-keun, President of POSCO, stated, "Starting with LNG cargo tanks, we will lead the global standard for eco-friendly ship materials."
Hanwha Ocean CEO Kim Hee-cheol also expressed, "By combining the technological capabilities of both companies, we will enhance the safety and economic viability of cargo tanks and expand applications to various low-temperature cargo transportation sectors."
Meanwhile, POSCO's high-manganese steel was recognized as a material for ultra-low temperature vessels by the International Maritime Organization (IMO) in 2022, and in May 2024, it will be officially listed as a standard material for LNG and ammonia cargo tanks and fuel tanks. POSCO is expanding the commercialization foundation of high-manganese steel through performance verification via actual vessel operations following the acquisition of international standards.
* This article has been translated by AI.
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