Shipbuilding companies in Qingdao Haixi Bay Shipbuilding and Offshore Industry Base in Shandong Province actively seek changes- undocking! Transition to clean energy

In the bustling shipbuilding hub of Haixi Bay, Qingdao, China, the maritime industry is undergoing a significant transformation towards clean energy, even as companies face the pressure of tight deadlines and heavy workloads. “We already have orders lined up until 2028, and we need to keep producing without stopping,” said Chen Zhihua, deputy director of the planning department at China Shipbuilding Group’s Qingdao Beihai Shipbuilding Co.

While the current workload is impressive, the company has navigated through a difficult transition period. Historically, the international shipping industry primarily relied on diesel as fuel, and many ships that were previously built ran on this traditional energy source. However, with increasingly stringent emissions regulations in international shipping, Chen emphasized, “It’s becoming extremely difficult to secure orders from international shipowners without building vessels that use clean energy.”

Responding to this shift in market demands, the company recognized the urgent need for transformation. “Liquefied natural gas (LNG) is currently the safest and most effective fuel for reducing emissions under existing economic and technical conditions,” explained Li Zhonggang, head of the design team at Beihai Shipbuilding. After extensive research, the team decided to focus on LNG-fueled ships as their first entry into low-carbon alternatives, targeting 210,000-ton bulk carriers, which are a mainstay in global shipping.

During the design phase, the challenge was managing evaporated gas and ensuring that the ship’s LNG fuel tanks wouldn’t exceed pressure limits. Burning off excess gas with a boiler not only increases energy consumption and emissions but also raises operational costs. Conversely, using dual-fuel generator sets proved inefficient.

To overcome these technological hurdles, the research and development team created a simulation system. In early 2021, after hundreds of simulation calculations and a series of pool model tests, Beihai Shipbuilding successfully developed a 210,000-ton LNG dual-fuel bulk carrier.

Upon learning of this advancement, foreign shipowners quickly responded, ordering three ships after reviewing the design. However, the installation of two 3,000-cubic-meter LNG storage tanks during construction presented new challenges. These tanks had to be lifted using a gantry crane and precisely placed on the front and rear saddles of the main deck. Achieving this alignment was no easy feat. Project manager Xu Kai and his team devised a simulation lifting plan and executed a meticulous three-dimensional data analysis. Workers ingeniously used hand winches at the corners of the tanks to assist in precise placement. Within 24 hours, a team of over 80 people successfully completed the tank installation.

Finally, the first 210,000-ton LNG dual-fuel bulk carrier built by Beihai Shipbuilding was launched on schedule, setting sail for open waters. Compared to traditional fuel ships, this vessel significantly reduced daily fuel consumption by 1.9 tons, cut nitrogen oxides emissions by over 25%, decreased carbon monoxide emissions by over 30%, and lowered carbon dioxide emissions by around 20%, while achieving nearly zero sulfur oxide emissions. This resulted in both economic and ecological benefits for vessel operations.

Currently, Beihai Shipbuilding holds contracts totaling 35.438 billion yuan and has 64 vessels on order, including seven 210,000-ton LNG dual-fuel bulk carriers. An impressive 87.5% of their orders involve new energy eco-friendly vessels, such as those powered by ammonia and methanol.

With a robust pipeline of orders, Beihai Shipbuilding is well-positioned for growth. Haixi Bay has attracted a cluster of shipbuilding and marine engineering manufacturing enterprises, supporting an annual capacity of 6.68 million deadweight tons for shipbuilding, over 200 repairs, and 500,000 tons of marine engineering steel processing.

Along the industrial chain, companies like China Ship Engine and Haixi Heavy Industry have set up operations in the Haixi Bay shipbuilding base. After sourcing engine crankshafts from Haixi Heavy Industry, China Ship Engine is now supplying engines for Beihai Shipbuilding. Collaboration between upstream and downstream businesses has led to an increase in local supply rates for ship engines to 89%.

Now, as the company takes on orders for large bulk carriers powered by ammonia fuel, the entire industrial chain is embarking on new research initiatives, collaboratively tackling the development and production of ammonia fuel engines. As a promising zero-carbon clean energy source, ammonia generates no carbon dioxide emissions upon combustion, setting a new goal for the shipbuilding base.