HHI in MOU to develop Mobile Powership

Mobile Powership

DECEMBER 10, 2013 — Three South Korean companies, Polaris Shipping Co., Ltd., Korea Midland Power Co., Ltd., and Hyundai Heavy Industries Co., Ltd., have signed a Memorandum of Understanding with Siemens Energy Solutions Ltd. to develop the Mobile Powership. Essentially, the idea is to put a power plant on top of an FSRU (Floating Storage Regasification Unit).

“This Powership integrates the LNG FSRU, the model first designed and built by Hyundai, with a top-of-the-line combined cycle unit with a capacity of 880 MW, which will give birth to an innovative naval architecture through combination of shipbuilding and plant engineering,” says Hyundai Heavy Industries. “We plan to target the overseas newbuilding market upon successful launch of the project.”

Among the advantages of the concept is that, because it does not have the large land requirements of a conventional power plant, there will be fewer community complaints. And by taking advantage of the efficiencies of the shipbuilding process, the overall construction period will be shortened. In fact, the parties to the MOU expect the initial Mobile Powership will start operation in December 17, at a total investment of $940 million.

Mobile Powership will utilize existing cables for power transmission so that the number of sections requiring new cable installation will be minimized, which leads to significant cost saving.  

“Mobile Powership is the world’s first invention to integrate a combined cycle power generating facility and liquefied gas storage in which a gas turbine and a regasification unit are directly linked to achieve curtailment of fuel cost,” said a Korea Midland Power Co., Ltd. spokesperson. “Hence, we are of a view that it can be a smart solution to surging demand for electricity in and out of Korea and a successful business model for the Creative Economy.”

“Siemens is delighted to participate in the Powership project based on an innovative business model to share our technical expertise and competitiveness which we have built in the global power producing market. Furthermore, synergy between Siemens’ engineering knowhow and Hyundai Heavy Industries’ world class shipbuilding technology will create a state-of-the-art offshore combined cycle power plant,” said Siemens CEO Dr. Rochus Bergmann.

“Mobile Powership is a mobile power plant with a capacity to promptly manage natural disasters such as earthquake and flood. As the world’s no.1 VLOC (Very Large Ore Carrier) owner in shipping industry, we are willing to bring in our best effort based on experiences in new ship design and trust we have earned from highly valued clients,” said a spokesperson from Polaris Shipping mentioned.

The parties to the MOU are now launching a task force to examine the technical issues that will be reflected in the engineering of Powership.

The plan is that once a pilot project in Korea proves the concept, then it will be exported to Philippines, Indonesia, Brazil, and other countries where power shortage has become a critical issue.