According to HD Hyundai, the electrification of large-scale vessels remains a formidable challenge as large commercial vessels must transport tens of thousands of tons over vast distances for weeks at a time without the possibility of mid-voyage recharging.
This necessitates not only massive energy storage solutions but a fundamental redesign of the ship’s propulsion architecture. To resolve such issues, the shipbuilding industry is exploring solutions that use electricity generated from clean energy sources such as hydrogen, natural gas, and ammonia to power propulsion motors. This approach significantly reduces GHG emissions while also minimising vibration and noise.
HD Hyundai sees electrification as having three phases: power generation, distribution and conversion, and propulsion. The shipbuilder is expanding the development and application of its ‘energy mix power system’, which combines dual-fuel engines (DFGE) with ammonia-based solid oxide fuel cells (SOFC). DFGE offers flexibility in responding to fluctuations in power demand. During vessel operations, propulsion loads can change rapidly, and onboard power requirements may surge depending on equipment usage. DFGE systems can respond quickly and efficiently to these variations.
SOFC systems, on the other hand, generate electricity through electrochemical reactions, directly converting the chemical energy of fuel into electricity without combustion. According to the US Department of Energy, this process reduces energy loss and improves overall efficiency compared to conventional engine- or turbine-based systems. Additionally, SOFC systems provide an environmentally friendly solution that enables greater flexibility in meeting tightening carbon regulations.
A key technology for efficiently distributing and converting generated electricity is the medium-voltage direct current (MVDC) system, which transmits electricity at voltages ranging from 1.5 kV to 100 kV. Historically, alternating current (AC) has been the standard method for transmitting electricity, but MVDC is becoming a gamechanger at sea. This is because it can optimise power conversion efficiency compared to conventional AC systems, minimising energy loss. MVDC has been known to improve integrated energy efficiency by up to 20% when applied to large electric-powered ships.
HD Hyundai is actively developing MVDC technology while collaborating with ABS to establish design standards and international regulations. In May 2024, the company signed a memorandum of understanding (MoU) with ABS to advance MVDC development and classification standards.
The final stage of ship electrification is propulsion. The medium-voltage propulsion drive, based on a modular multilevel converter (MMC) structure, is a critical component that precisely controls motor torque and speed. This system delivers high-quality voltage and precise control, making it particularly effective for vessels requiring low noise and vibration, such as naval ships conducting covert operations. It enables stable performance even under extreme conditions, including ultra-low-speed operation and rapid acceleration or deceleration, while significantly reducing detectability compared to conventional mechanical propulsion systems.
HD Hyundai has secured core technologies for propulsion drives, which were previously reliant on imports, thereby strengthening its technological independence. As a result, the company believes it has become the first in the global shipbuilding industry to localise the entire electric propulsion platform—from power generation to distribution and propulsion. HD Hyundai plans to officially commercialise its propulsion drive in 2028.
By securing technologies across the entire electrification value chain, HD Hyundai says it is positioning itself at the forefront of the transition to large electric-powered ships. In 2025, HD Hyundai received Approval in Principle (AiP) from ABS for the concept design of a 16,000 TEU container ship equipped with an electric propulsion system. HD Hyundai is now accelerating R&D efforts with the goal of commercialising large electric-powered vessels by 2030.
Image: HD Hyundai’s electric commercial ship vision (source: HD Hyundai)
