ABS Greenlights HD KSOE’s Breakthrough VLEC System for Cheaper, Cleaner Gas Transport

Refrigerant-Based Reliquefication Tech Could Reshape Ethane Shipping

In a move that could slash operating costs for very large ethane carriers (VLECs), ABS has granted Approval in Principle (AiP) to HD Korea Shipbuilding & Offshore Engineering (HD KSOE) for a cargo handling system featuring two game-changing innovations: a refrigerant-based reliquefication system and integrated ethane fuel supply. The design aims to maintain precise temperature and pressure control during transport—a critical challenge for volatile gas carriers—while tapping into ABS’s decades of gas carrier expertise.

“This system isn’t just about efficiency—it’s a strategic leap in our eco-friendly equipment value chain,” said HD KSOE’s CEO, noting its potential to strengthen their position in the sustainable shipping arms race.

The AiP follows a 2023 memorandum of understanding between ABS and HD KSOE to co-develop next-gen vessel technologies targeting net-zero emissions. HD KSOE’s VP underscored the collaboration’s broader mission: “We’re pooling resources to accelerate core technologies for both conventional gas carriers and zero-carbon-fueled ships.” The partners have form—their previous joint projects include AI-driven safety systems with Hyundai Heavy Industries (HHI) and Liberia’s LISCR, plus medium-voltage DC power feasibility studies.

HD KSOE’s AiP Hot Streak Continues

This marks HD KSOE’s fourth major ABS nod in 12 months, building on approvals for liquid hydrogen storage tanks, methanol dual-fuel hybrid tugs, and ammonia-fueled autonomous ships. Each innovation addresses a different piece of shipping’s decarbonization puzzle, but the VLEC system stands out for its immediate cost-saving potential. By using ethane both as cargo and fuel, operators could sidestep the bunkering headaches plaguing other alternative fuels.

“Reliquefication systems are the unsung heroes of gas transport,” noted an ABS engineer. “This refrigerant-based approach could set a new benchmark for energy efficiency in the segment.”

With ethane demand projected to grow 8% annually through 2030—driven by petrochemical feedstock needs—the timing is ripe for HD KSOE’s system. Analysts suggest it could give early adopters a 15-20% edge in operating expenses over conventional VLECs. As shipowners weigh CapEx against future fuel uncertainty, solutions that marry environmental gains with hard economics may prove the most disruptive of all.