SDHI Secures India's First Ammonia Dual-Fuel Bulk Carrier Order from Energy ONE Limited
Swan Defence and Heavy Industries Limited (SDHI) has secured a significant shipbuilding contract with Energy ONE Limited. The agreement involves the construction of four 92,500 DWT dual-fuel ammonia bulk carriers, marking a first for the country in ammonia-fueled vessels.The order is classified as a Category 4 development, highlighting the significance of this project for India's green shipbuilding sector. These vessels represent both a technological advancement and a scale milestone for the domestic shipbuilding industry.
Each dual-fuel vessel is anticipated to measure 229.5m in length and have a beam of 37m. The carriers will be outfitted with an ammonia-fuelled propulsion system and designed by KMS-EMEC, South Korea, while receiving classification from Det Norske Veritas (DNV).
Vivek Merchant, Director at Swan Defence and Heavy Industries Limited (SDHI), stated that winning the project reflects the confidence global stakeholders have in Indian shipbuilding capabilities, particularly at the Pipavav facility. He noted that building vessels aligned with the industry's future, such as those utilizing ammonia as a marine fuel, is a key focus.
The delivery schedule for the vessels has been set with the first unit expected in October 2029, followed by subsequent deliveries at four-month intervals.
Energy ONE Limited is noted as a General Partner for New Energy One (NEO), an investment fund registered in Jersey Channel Islands. NEO has pledged a total capital investment program of USD 2 billion towards zero-emission ships, supporting commodity producers in reducing greenhouse gas (GHG) emissions. Furthermore, NEO has executed an MoU with Sagarmala Finance Corp Ltd (SMFCL) for the Maritime Development Fund (MDF) to coinvest in green shipping projects.
For context, the order classification structure details the value bands:
| Order Classification | Order Value in Rs. |
|---|---|
| Category 1 | 0 to 250 |
| Category 2 | 251 to 750 |
| Category 3 | 751 to 1500 |
| Category 4 | 1501 to 3000 |
| Category 5 | Above 3000 |
Swan Defence and Heavy Industries Limited, formerly Reliance Naval and Engineering Limited, operates a major shipyard on the west coast of India, featuring the country's largest dry dock (662m x 65m) and an annual fabrication capacity of 164,000 tons.
SWANDEF Stock Price Movement
At the close of trade yesterday, Swan Defence and Heavy Industries Limited surged by 5% to trade at ₹1706.8. The stock carved out a solid session, marking a trading band between ₹1544.4 and ₹1706.8.Source:
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