Hanwha Power Systems and Hanwha Ocean have signed a joint development and collaboration agreement with Baker Hughes, a global energy technology leader, to design and produce ammonia-powered gas turbines for ships. The company announced this during the Baker Hughes Annual Meeting 2025 in Florence, Italy. This groundbreaking collaboration aims at enabling carbon-free ship operations and furthering the global transition to more sustainable maritime transport.
Pioneering the First Fossil Fuel-Free Ships
This collaboration follows Hanwha Group’s ambitious declaration at the Davos Forum in January last year, where the company set its sights on developing the world’s first fossil fuel-free ships. It will combine ammonia gas turbine propulsion systems in LNG carriers and container ships.
The ammonia gas turbines produced under this agreement will use Baker Hughes’ class-leading small-size turbine technology in combination with a novel ammonia combustion system developed by PSM, a Hanwha subsidiary in the United States. These turbines will burn 100% ammonia but can also operate on a blend of natural gas and ammonia. This novel propulsion technology will change the face of the shipping industry, offering a carbon-free alternative for large ship owners.
A New Era for Eco-Friendly Shipbuilding
Hanwha Power Systems and Hanwha Ocean are actively driving the global shift to eco-friendly fuel propulsion for ships. The collaboration with Baker Hughes will speed up the shift to sustainable fuels, helping reduce carbon emissions in shipping.
Executive Director Kim Hyeong-seok, head of Hanwha Power Systems’ Marine Solutions Business Department, said, “The paradigm of switching to lower carbon fuel for ships is the calling of the times, and Hanwha Power Systems will continue to lead the development of innovative technologies for the entire life cycle of eco-friendly ships.”
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In September 2023, Hanwha Power Systems and Hanwha Ocean received Approval in Principle from the American Bureau of Shipping for applying ammonia gas turbine technology on LNG carriers. Additionally, the collaboration has already made significant progress, with PSM completing its initial high-pressure ammonia combustion tests and Baker Hughes completing turbine feasibility studies in 2024.
Furthermore, as part of the initiative, Hanwha Power Systems, in September 2024 at Gastech, Houston, inked a memorandum of understanding (MOU) with a top European LNG carrier shipping company with plans to retrofit the company’s existing propulsion systems with ammonia gas turbines, among other things, marking a landmark step in using this new technology.