POSCO, Hanwha Ocean to demonstrate high-manganese steel LNG cargo tanks

[Financial News] POSCO is expanding the application of its independently developed high-manganese steel from fuel tanks on LNG-powered vessels to cargo tanks on large LNG carriers, in partnership with Hanwha Ocean Co., Ltd. The plan is to secure a demonstration vessel equipped with high-manganese steel cargo tanks, verify safety and durability under actual operating conditions, and build up the operational track record needed for commercialization.
POSCO announced that it signed a “Memorandum of Understanding (MOU) on securing a demonstration vessel for high-manganese steel cargo tanks” on the 15th at the Hanwha Ocean Geoje Shipyard, with senior executives from both companies in attendance, including POSCO President Heegeun Lee and Hanwha Ocean CEO Hee-Chul Kim. POSCO Group affiliates, including POSCO International and POSCO Flow, are also participating in the partnership to support the vessel’s acquisition and operation.
The two companies plan to build a demonstration vessel equipped with high-manganese steel cargo tanks, with Hanwha Ocean taking the lead, and to verify safety, durability, and operational efficiency under actual operating conditions. They aim to secure an operational track record they can present to global shipowners.
High-manganese steel is a specialty steel developed to retain its strength and impact toughness even in cryogenic conditions of -163°C or lower. POSCO said it is competitive in terms of cost and material supply compared with INVAR, the nickel alloy steel used in existing LNG cargo tanks.
POSCO and Hanwha Ocean have conducted joint research for about a decade on applying high-manganese steel to ships. The steel has been used in LNG fuel tanks on Hanwha Ocean’s ultra-large crude oil carriers and container ships. According to POSCO, it had been applied to a total of 51 vessels by this year, including those with LNG fuel tanks.
The partnership aims to expand the use of high-manganese steel on ships from fuel tanks on LNG-powered vessels, which store fuel for the vessels themselves, to cargo tanks that hold large volumes of LNG for transport. According to POSCO, about 1,000 tonnes of material are used for the LNG fuel tank on each vessel, while an LNG carrier’s cargo tanks require approximately 10,000 tonnes or more per vessel.
However, commercializing high-manganese steel cargo tanks requires performance verification through actual operation and the establishment of an operational track record. Based on this demonstration, the two companies also plan to pursue ways to expand its applications to LNG bunkering vessels and floating storage and regasification units (FSRUs).
“Starting with LNG cargo tanks, we will take the lead in setting global standards for eco-friendly shipbuilding materials,” said POSCO President and CEO Heegeun Lee.

[email protected] Kim Mi-hee Reporter