Kim emphasizes that strict regulations will keep climate action on track despite tariff-driven market instability.
According to Kim, the only way to curb tariff uncertainty is through implementation of stricter regulations.
“Even if market destabilizes due to tariffs, the drive to address global climate change will not die down. If the regulations are enforced strictly, the market will follow irrespective of geopolitical climate,” says Kim.
Hanwha recently secured an Approval in Principle (AiP) from the American Bureau of Shipping (ABS) for its ammonia gas turbine retrofit design. Kim, on behalf of Hanwha, spoke about the retrofitting technology, its challenges, ammonia as a fuel and their expansion plans.
Catch the full conversation below.
1. What was the reasoning behind choosing ammonia as a fuel for the turbine technology?
A. Hanwha’s 2023 success with 100% hydrogen combustion in an 80MW turbine was only the first step. To meet the maritime sector’s need for sustainable propulsion, we developed ammonia gas turbines with our partner, Baker Hughes, enabling zero-carbon operation and electric propulsion.
With the IMO’s Net Zero Framework approved in April 2025 extending global carbon regulations, ammonia offers a competitive, future-proof solution. Our recent AIP confirms the safety and feasibility of retrofitting existing LNG carriers, proving the technology’s potential to extend vessel lifespans and deliver strong value to both shipowners and charterers.
2. In your release you mentioned that the turbine doesn’t use any pilot fuel. How were you able to achieve this and what are its broader implications in terms of vessel functionality?
A. The ultimate way to completely slash CO2 emissions by 100% is to use carbon-free fuels. Our gas turbine can achieve this because it uses ammonia as a fuel and hence does not require any pilot oil. Conventional engines like diesel engines use a compression ignition method, which is reliant on pilot oil for ignition to ensure stability. In contrast, gas turbines initially ignite using an igniter and then maintain combustion continuously without pilot oil.
Our ammonia gas turbine is a dual fuel engine – it can run on ammonia as well as LNG. Meaning it gives both LNG and ammonia fuel flexibility to co-fire ammonia with BOG (Boil-off Gas) generated continuously from the LNG cargo tank in the case of LNG carriers. It ensures economical operation because it helps ship owners to respond to uncertain future fuel cost and evolving regulations with great flexibility.
3. How is ammonia fuel different from other green fuels like hydrogen or methanol in terms of performance?
A. Ammonia has a significant advantage of having no carbon emissions and is easier to store (liquefied at -33 degrees) and transport than hydrogen. Additionally, there is an already established global infrastructure, such as tanks, pipelines, and port facilities, which makes it advantageous from a supply chain perspective.
If green ammonia mass production technology is supported, its potential as a sustainable ship fuel is very high, and it is likely to establish itself not merely as an interim fuel but as a fundamental ZNZ (Zero or Near-Zero) solution.
4. When do you expect your turbines to be commercially deployed on vessels?
A. We aim to commercialize it by 2028. We plan to complete technology development by 2026 and conduct demonstration and certification at the full-scale test facility in 2027.
Hanwha Power Systems is currently establishing a full-scale demonstration facility and is preparing a business site of the necessary size, considering volume expansion in the future mass production stage.
5. You’ve mentioned that this AiP lays the foundation for retrofit packages to convert existing LNG carriers to run on ammonia. What modifications are required on these vessels, and how seamless will be the conversion process?
A. This modification requires large-scale construction because it needs to change the propulsion system. The concept involves removing the medium-speed engines that composed the existing propulsion system and installing a gas turbine, and we have added an ammonia tank and fuel supply system to supply the ammonia fuel required for the gas turbine.
Obtaining AIP means that this fundamental design has been recognized by the classification society as practically implementable and capable of ensuring safety.
6. For shipowners operating LNG fleets today, how practical is the retrofit pathway to ammonia — in terms of cost, downtime, and regulatory approvals?
A. The renovation cost is not a small, but considering the extension of the ship's operational lifespan and the significant reduction of environmental regulation costs, the OPEX savings over decades make it worthwhile to analyze the IRR, and we believe the investment value is sufficient. This will provide even greater benefits as environmental regulations continue to tighten in the future.
7. Beyond LNG carriers, which vessel types do you see as the most suitable candidates for ammonia turbine retrofits?
A. We began developing our ammonia gas turbine in 2023, first targeting 174k+ LNG carriers, for which we secured AIP from ABS. The turbine can flexibly burn ammonia and natural gas while supporting compliance with stricter emission rules and potential credit gains.
Interest is now growing among container shipping companies. Unlike LNG carriers, they often prefer heavy fuel oil (FO) for starting or backup. To meet this need, we are developing an ammonia gas turbine that can start and co-fire with FO.
This flexibility makes the technology suitable not only for LNGCs and container ships, but also for VLACs, VLCCs, and other vessel types.
8. Are there any pilot projects or demonstration vessels planned in collaboration with another company?
A. Currently, our ammonia gas turbine solution is attracting interest from various shipowners, and we are progressing with joint development projects not only for the DFDE LNGC retrofit but also for large, medium, and small container ships.
9. With global tariffs and trade policies influencing fuel prices currently, how do you see it impacting the adoption of your technology?
A. The geopolitical landscape is complex and ever-changing, but it will not alter the global drive to address climate change. Even if tariffs temporarily raise green ammonia prices, this will spur domestic production or alternative supply, balancing the market. Ultimately, environmental regulations remain the key factor—if they are enforced as planned, the market will adjust accordingly.
10. Are there any expansion plans to open technical facilities in the US?
A. Although there are no specific plans yet, Hanwha is closely monitoring the signs of a revival in the U.S. shipbuilding industry and intends to continuously review various options to ensure quick responses to future market changes.
ChemAnalyst Ammonia Market Insight
In Q2 2025 ending June, North America’s ammonia market saw consistent declines due to seasonal demand easing from agriculture, despite steady production and sufficient inventories. By July, supply constraints and refilling activity supported a modest market rebound, while an ongoing outage at the Gulf Coast Ammonia plant tightened availability. Stable imports from Trinidad provided some relief, though concerns over potential natural gas curtailments hinted at future volatility.
Natural gas markets in Q2 2025 ending June saw early weakness from mild weather, strong storage injections, and softer industrial demand, but strengthened later with rising cooling needs, tighter LNG feedgas volumes, and lower output. Production was constrained by maintenance and reduced Canadian imports, while geopolitical tensions and crude oil gains boosted sentiment.
