Hanwha Ocean emerges as key player for US icebreaker market

Hanwha Ocean's icebreaking liquefied natural gas carrier / Courtesy of Hanwha Ocean

Hanwha Ocean is emerging as a leading contender for upcoming icebreaking liquefied natural gas (LNG) carrier contracts from the United States, as the country ramps up efforts to expand its Arctic presence through large-scale construction of icebreakers.

The Hanwha affiliate is well positioned to secure possible orders from the U.S., as the company has built more of the specialized vessels than any other shipbuilder. Hanwha Ocean has so far constructed 21 icebreaking LNG carriers — 15 in 2014 and six in 2020.

The U.S. has been accelerating efforts to bolster its icebreaker fleet, which lags significantly behind that of Russia.

According to a recent report published by the Federation of Korean Industries, the U.S. has had minimal icebreaker construction experience over the past 50 years, while Russia currently operates more than 50 icebreakers.

U.S. President Donald Trump also said the country would seek to order approximately 40 large icebreakers for the country’s Coast Guard.

Icebreaking LNG carriers are considered value-added vessels, costing about 1.6 times more than typical LNG carriers. Conventional LNG vessels use 20-millimeter-thick steel plates, but icebreaking versions require ultra-high-strength steel plates measuring 30 to 40 mm, and up to 70 mm for the bow and stern.

Their internal structure is also more robust, with reinforcements installed every 40 centimeters — half the typical spacing in conventional cargo ships.

Unlike standard LNG carriers, which require chartering separate icebreakers to clear Arctic routes at a cost ranging from $100,000 (138 million won) to $200,000 per day, Hanwha Ocean’s integrated icebreaking LNG carriers eliminate the need for escort vessels, significantly reducing operating costs.

Hanwha Ocean began developing polar-class vessels in 2008, and has since built expertise in icebreaker construction. In April 2011, the company unveiled a scale model of its Arctic-class LNG carrier at the Arctic Forum in Finland. The 1:36 model successfully demonstrated its ability to break both flat ice and ice ridges, which earned international attention.

“Hanwha Ocean has delivered more LNG carriers — across all types — than any other shipyard globally,” an official from the company said. “For this year, we became the first player in the industry to have delivered our 200th LNG carrier.”