MAN, HHI Join Forces on LPG Dual-Fuel Engine

Business & Finance

MAN Diesel & Turbo has signed a Memorandum of Understanding (MoU) with Hyundai Heavy Industries Engine & Machinery Division (HHI-EMD) on the development and production of MAN B&W ME-LGIP dual-fuel engines.

Upon completion, HHI-EMD will be able to deliver liquefied petroleum gas (LPG) –fuelled, two-stroke-propulsion engines.

The alliance creation comes on the back of ever more stringent environmental regulations, which have seen LPG carriers call for the development of an LPG-fuelled engine for their ships.

“MAN Diesel & Turbo has previously experienced strong market interest in using LPG as a fuel aboard LPG carriers, but other shipping segments have also begun investigating this option, a general tendency that is growing,” Bjarne Foldager, Vice President Sales & Promotion, Two-Stroke Business at MAN Diesel & Turbo, said.

“LPG holds great potential as a fuel since it contains no sulphur, is widely available, and easy to bunker. It is therefore becoming an increasingly attractive alternative to other, low-sulphur fuel types. We have a long tradition of technical cooperation with our licensees and we are looking forward to working with Hyundai on this exciting project.”

The company anticipates that the ME-LGIP installation aboard a merchant ship will be extremely competitive price-wise, compared to other, dual-fuel-burning engine types.

LPG’s future as a marine fuel looks promising as it will not require as large an investment in infrastructure – such as bunkering facilities – in contrast to other, gaseous fuels.

Accordingly, MAN Diesel & Turbo expects a strong demand for LGIP engines for very large gas carriers (VLGCs) and coastal vessels from their introduction.