The article explains that demand for LNG carriers and high-value vessels remains strong. It also states that demand for low-carbon, high-efficiency ships is growing due to stricter environmental regulations.

The report emphasizes that South Korean shipbuilders have a strong presence in the high-value-added vessel market. While Chinese companies have the upper hand in terms of volume, the analysis suggests that South Korean firms remain dominant in cutting-edge sectors such as LNG carriers.

The increase in orders is due in part to the expansion of Middle Eastern energy projects and the recovery of the shipping market. It also notes that expectations for improved profitability in the shipbuilding industry are rising.

Source: Seoul Economic Daily

PSR Analysis: The recent surge in large vessel orders for Korean shipbuilders suggests that the industry is entering a new phase in which technological complexity is more important than production scale.

While China continues to dominate global shipbuilding volume, Korean shipyards remain highly competitive in building LNG carriers and other technically demanding vessels. This distinction is becoming increasingly important as environmental regulations tighten, and shipowners prioritize fuel flexibility, efficiency, and long-term compliance.

What is often overlooked is the broader industrial impact of this trend. LNG carriers and advanced vessels generate high demand for high-value subsystems, including marine engines, generators, power electronics, cryogenic equipment, and automation systems. Consequently, the current shipbuilding cycle could have a greater multiplier effect on industrial supply chains than previous commodity-driven shipping booms.

Another significant shift is the growing connection between Middle Eastern energy investments and Northeast Asian industrial manufacturing. LNG infrastructure expansion is not just an energy issue anymore; it is also supporting sustained demand for Korean heavy industry exports.

The competitive landscape may evolve differently than in previous cycles. While Chinese shipbuilders are rapidly improving their technical capabilities, Korean companies are moving further upstream toward integrated, engineering-intensive solutions rather than competing purely on vessel output.

This suggests that future competition may focus less on shipyard capacity and more on controlling advanced marine systems, propulsion integration, emissions technology, and lifecycle service capabilities. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research

There seems to be a never ending cycle of oil-related problems. In 2008, supply, demand and speculation caused a massive price hike. In 2022, Russia invaded Ukraine causing another oil price hike. And now, the US-Israeli attack on Iran has driven yet another price hike. The fundamental problem is that transportation remains totally dependent on oil, and oil prices are set by a very volatile global market.

This whole problem has encouraged motorists to do the math, and the result is staggering. Motorists simply cannot afford not to buy an EV as their next vehicle. This article goes into the math behind this.

Source: Electrek: Read The Article

PSR Analysis: EVs cut across this problem, and it doesn’t impact them because electric prices are set nationally not by a very volatile global market and they are a fraction of gas prices. Electric prices are also a way out of oil dependence.      PSR

Guy Youngs is Forecast & Adoption Lead at Power Systems Research

Yanmar Power Solutions is advancing the development of engines that are compatible with next-generation fuels. In anticipation of future increased production volumes of marine and land-based engines, the company has acquired a site in Amagasaki City, Hyogo Prefecture.

The new plant will be used to conduct test runs of marine hydrogen engines and to reorganize and strengthen production capabilities, including those of existing plants. The new plant is scheduled to begin operations about March 2029.

In the marine industry, there are ongoing efforts to develop and commercialize decarbonization technologies with the aim of achieving carbon neutrality by 2050. Leveraging its expertise in engine development and production, Yanmar Power Solutions plans to develop powertrains compatible with next-generation fuels, including hydrogen, methanol and ammonia, and establish production systems to support them.

Source: Yanmar Official Release

PSR Analysis: I believe that Yanmar’s latest move indicates a shift in efforts to decarbonize marine engines from the “technology development” phase to the “production system establishment” phase. Although alternative fuels, such as hydrogen and ammonia, have largely remained in the demonstration or conceptual stage, the decision to construct a dedicated factory is a step toward future commercialization. In the marine sector, in particular, there are many large-scale applications for which electrification is not a realistic alternative. It is becoming increasingly clear that the primary approach will be to switch fuels while retaining the engines themselves.

This move will likely entail more than just a technological shift; it will also require a restructuring of the supply chain. Widespread adoption of hydrogen engines requires an ecosystem involving multiple players, including fuel supply infrastructure, ship operators, and port facilities, and cannot be achieved by engine manufacturers alone.

While moves such as this, where manufacturers take the lead in establishing production systems, can be viewed as part of their positioning strategy with an eye toward future market launches, actual demand formation depends heavily on progress on the fuel supply side. Thus, decarbonization in the marine engine sector is shifting from “product competition” to “industry competition linked to infrastructure.” PSR

Akihiro Komuro, Research Analyst, Far East and Southeast Asia, in Power Systems Research

The tests were completed in January 2026 on the X52DF-A-1.0 engine at the Engine & Machinery Division of HD Hyundai Heavy Industries (HHI-EMD) in South Korea, witnessed by Lloyd’s Register together with representatives from major classification societies and under the supervision of EXMAR.

The 52-bore engine is scheduled to be installed on a 46,000 m3 LPG/ammonia carrier ordered for EXMAR. According to WinGD, the vessel series is expected to become the first ammonia-fueled gas carriers to enter commercial service, representing an important step in the shipping industry’s decarbonization efforts. The company said the development program demonstrated strong safety, reliability and performance results under a fuel pathway widely viewed as one of the more promising zero-carbon options for long-distance marine transport.

WinGD said the X-DF-A engine uses high-pressure ammonia injection with a pilot fuel dose of around 5% at full load, while delivering load handling, dynamic response and fuel efficiency comparable to equivalent diesel-fueled X-Engines in both ammonia and diesel modes. The company also said emissions results were encouraging, including NOx levels during ammonia operation that were below those generated in diesel use, alongside negligible contribution of N2O to the overall greenhouse gas emissions footprint. WinGD added that it has already secured an early orderbook of around 30 X-DF-A engines across multiple vessel segments.

Source: WinGD

Many alternative-fuel projects still sit at the concept or pilot stage. This one is different because it was executed on an engine destined for an actual commercial vessel program, under classification-society supervision and in cooperation with a yard ecosystem that can industrialize the result.

PSR Analysis: The real significance of this announcement is not the “world first” label by itself, but the fact that Korea is positioning itself around the most commercially critical bottlenecks in ammonia propulsion: engine manufacturing, class-approved testing and shipyard integration.

That matters because the next competitive phase in marine decarbonization will not be decided by who publishes the boldest fuel vision, but by who can make shipowners, charterers, insurers and financiers comfortable that the machinery can be ordered, classed, built and operated without introducing unacceptable technical risk.

The deeper industry implication is that ammonia is becoming less a pure fuel debate and more a capability race across the maritime supply chain. Korean players benefit because their strength is not limited to shipbuilding volume; they can connect engine builder, yard, equipment supplier and regulatory interface inside one coordinated industrial base.

Even so, this does not mean ammonia has already “won.” Toxicity, crew handling, pilot fuel dependence, fuel availability and bunkering economics remain major barriers, and these issues may slow adoption outside cargoes and routes where ammonia logic is especially strong. What Korea is really buying through early testing is optionality and credibility.

If ammonia scales, Korean yards are ahead. If it does not scale as quickly as hoped, they still gain by proving they can validate and industrialize whichever future-fuel platform the market ultimately rewards. That is a more durable competitive advantage than simply being first to announce a new engine. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research

In 2025, 470 superyachts were sold globally, marking a 19.8% increase compared to 2024. Around 250–300 newly built yachts were delivered, including 10 yachts over 100 meters, a record year. Approximately 45% of market demand comes from charter activity, highlighting the importance of commercial readiness and high-quality guest experiences.

The Global Order Book for 2026 lists 1,093 projects, a 3.9% increase compared to 2025, with leading manufacturers such as Azimut-Benetti and Sanlorenzo topping unit numbers. Italian manufacturers retain 54% of total global production, followed by the Netherlands, Turkey, and Germany, which focus on larger, ultra-luxury custom builds.

Demand remains strong, driven by rising global wealth and a generational shift in ownership. The average age of superyacht owners has fallen by around 10 years over the past two decades, with the 35–45 age group becoming increasingly influential. This new generation prioritizes flexibility, advanced technology, and meaningful travel experiences over overt displays of luxury.

Engines and power systems have become central to purchasing and charter decisions. Traditional yachts rely on twin high-horsepower diesel engines for propulsion and separate diesel generators for onboard power. Hybrid propulsion systems are now gaining ground, combining diesel engines with electric motors and battery banks. These systems allow silent low-speed operation, reducing fuel consumption by 20–30% in certain cruising conditions.

Advanced energy management systems optimize power distribution between propulsion, hotel loads, and battery storage. Some new builds also explore methanol-ready engines and hydrogen fuel-cell technology, particularly for environmentally sensitive cruising areas. Engine choice is increasingly a strategic decision that affects both resale value and charter appeal.

A notable example is Feadship’s Breakthrough, delivered in 2025 — a 118.8 m hybrid superyacht combining diesel-electric propulsion with a hydrogen fuel-cell system, representing one of the most advanced green propulsion approaches in the industry. Currently, hybrid yachts make up around 5% of the fleet, but this share is expected to grow by 10% annually in the coming years.

Sustainability has shifted from a desirable feature to an industry expectation. Hybrid propulsion, alternative fuels, and responsibly sourced materials are increasingly standard in new builds and refits. Yachts with strong environmental credentials attract more charter clients and retain long-term value. Technology is also central to market performance: smart automation systems, AI-driven efficiency tools, and high-speed satellite connectivity are now considered essential.

As the global fleet expands, identity and presentation matter more than ever. In a market shaped by quiet luxury, cohesive design, refined detailing, and strong vessel branding are key competitive differentiators.

Overall, 2026 is defined by steady growth, evolving client expectations, and a stronger emphasis on sustainability, technology, and experience-led value. Those who adapt strategically to these shifts — across both the 30 m+ superyacht segment and the broader 24 m+ charter-ready market — will be best positioned for success in the years ahead.   PSR

Natasa Mulahalilovic is Marine Pleasure Boat Analyst-Europe for Power Systems Research

Guy Youngs is Forecast and Technology Adoption Lead at Power Systems Research

The New Energy and Industrial Technology Development Organization (NEDO), Kawasaki Heavy Industries, Yanmar Power Solutions, and Japan Engine Corporation have announced the installation of new liquefied hydrogen fuel supply equipment for demonstration purposes, as well as the start of land-based operation of marine hydrogen engines.

This is part of a project commissioned by NEDO’s Green Innovation Fund/Next-Generation Ship Development Project. Three purely domestic engine manufacturers have formed a consortium: Kawasaki Heavy Industries, Yanmar Power Solutions, and Japan Engine.

As part of the consortium’s research and development (R&D) structure, the three companies will each develop marine hydrogen engines for ships with different cruising ranges. Kawasaki Heavy Industries will develop the Marine Hydrogen Fuel System (MHFS), which consists of a marine hydrogen fuel tank and fuel supply system, to supply hydrogen fuel to the marine hydrogen engines.

Furthermore, HyEng, which is jointly funded by the three companies, is conducting joint research on common challenges in marine hydrogen engine development and manages shared facilities. Nippon Kaiji Kyokai (ClassNK) is cooperating on ship classification approval, and Iwatani Corporation is assisting with the supply of liquefied hydrogen.

Kawasaki Heavy Industries marine hydrogen engine targets small to large domestic vessels. Its single-unit output ranges from 2 to 8 MW, and up to 30 MW with multiple units installed. Development goals include achieving an average effective pressure of at least 1,600 kPa and an onshore test shaft-end output of at least 2,600 kW. The hydrogen blend ratio is 99.9% by volume and 95% or higher by heat content. A key feature of the development engine is its three EGR (exhaust gas recirculation) systems, which handle the steep combustion characteristics inherent to hydrogen engines.

Yanmar Power Solutions is developing two models based on marine diesel engine technology: an 800 kW medium-speed hydrogen engine that supports dual-fuel operation (hydrogen/diesel) and a 1,400 kW high-speed hydrogen engine designed for pure hydrogen combustion.

While Kawasaki Heavy Industries and Yanmar Power Solutions’ marine hydrogen engines are four-stroke, Japan Engine’s engine targets a high output exceeding 5,000 kW per unit and is a low-speed, two-stroke engine that utilizes high-pressure direct injection.

For the three companies’ actual ship demonstrations of their marine hydrogen engines, it is also necessary to develop MHFS units scaled to the size of the vessels. The MHFS currently used in land-based demonstration tests is a medium-sized unit for Kawasaki Heavy Industries’ marine hydrogen engine. Going forward, development will proceed on a small MHFS for Yanmar Power Solutions and a larger MHFS for Japan Engine.

Source: NEDO

PSR Analysis: Kawasaki Heavy Industries, Yanmar Power Technology, and J-ENG have made a significant demonstration by integrating liquefied hydrogen supply equipment and marine hydrogen engines with the support of the GI (Green Innovation) Fund.

Previous discussions about hydrogen fuel ships focused solely on the engine or individual technologies. However, this project established a continuous system that covers everything from liquefied hydrogen supply to engine fuel supply and operation.

This demonstrates progress beyond merely proving the technical feasibility of hydrogen-fueled ships, reaching the level of operational viability. Liquefied hydrogen is notoriously difficult to handle, and integrating the fuel supply equipment with the engine was considered the greatest barrier. The fact that this bottleneck was overcome as a complete system is likely to be highly regarded internationally. Although the testing was conducted on land, operating the engine under conditions that simulate actual operation is a crucial milestone toward future installation on real ships. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, at Power Systems Research

Japan Engine Corporation (J-ENG) has announced the completion of its first full-scale ammonia-fueled engine. The engine is due to be shipped to Japan Marine United (JMU)’s Ariake Works for installation on an ammonia-fueled ammonia carrier (AFMGC) which is currently under construction at the facility. The vessel is scheduled to enter service in November 2026.

Source: Kaiji Press Online

PSR Analysis: J-ENG’s first domestically produced ammonia fuel engine is a significant milestone as Japan strives to lead the way in marine decarbonization technology. Ammonia emits no CO₂ during combustion, making it a strong candidate for alternative fuels under the stricter IMO GHG regulations.

Commercial-level completion and shipment will establish a competitive advantage. It will also accelerate investment in related industries, such as port bunkering facilities and the development of an ammonia supply network, by fostering a ‘Japanese-style ecosystem’ of domestic shipbuilding, engine manufacturing and fuel supply. However, challenges remain in terms of safety, combustion efficiency and NOx management. The next focus will be whether real-ship testing will enable Japan to take the lead in international standardization (ISO/IMO). Due to the high construction costs and the need to develop the supply environment, market penetration is likely to be gradual. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research

No other boat has pushed the boundaries of green yachting as far as the MODX 70, winner of the 2025 Multihull of the Year award for its advanced, intelligent vision of zero-carbon sailing, announced at the Cannes Yachting Festival.

The concept was introduced in 2008 and finally brought to life in 2025 through the combined efforts of Ocean Development, VPLP Design, Aeroforce, MG Energy, Madden Tech, and many other visionary partners.

The project has earned recognition from the French government under the France 2030 Plan, receiving support through the i-Nov competition for sustainable and intelligent mobility in 2021, which helped fund the ambitious and costly development.

Read The Article

At Cannes, the final product was unveiled: a 21.33-meter, fully electric, high-performance trimaran offering 200 m² of living space.

Ocean Development, led by passionate sustainability and yachting advocates Marco Simeoni, Franck David, and Jean Guyon, developed the concept and oversaw construction of the vessel in Lorient, France. The design phase, managed by VPLP Design, took four years, while building the first unit required 18 months.

The MODX 70 is equipped with two retractable wings inspired by aeronautics and developed by Aeroforce. These inflatable wings rise 23 meters high, can be adjusted from 25% to 100% efficiency, and operate fully automatically. With no need for traditional rigging, navigation is simplified and comfortable.

Propulsion is powered by a 250 kWh MG Energy Systems LiFePo4 battery storage system, divided into two banks. These feed two ENGIRO electric motors of 40 kW each, supported by 70 m² of NME3 Next Generation solar panels and a hydrogeneration system.

An AI-driven autopilot system developed by Madden Tech oversees vessel operations, seamlessly integrating propulsion and wing management.

The first MODX 70 has already been acquired by Mr. Stan Shih, co-owner of Acer Group Taiwan, who will use it to champion clean, quiet, and intelligent yachting.  PSR

Natasa Mulahalilovic is Marine Pleasure Boat Analyst-Europe for Power Systems Research

The Electric & Hybrid Marine Exhibition 2025 held June 24 – 26, 2025, featured increased corporate collaboration and demonstrated a focus on sustainability, the adoption of immersive technologies, and enhanced connectivity.

These development trends were built on a collaborative approach to maritime electrification and decarbonization and reflect incremental improvements as well as a strategic shift toward smarter, greener, and more autonomous marine operations.

The show was held at the RAI Amsterdam complex and lasted three days. About 200 exhibitors participated, including leading companies in electric and hybrid marine technology, propulsion, and charging infrastructure.

Representatives of Power Systems Research attended the show to collect data on new products and to talk with exhibitors and attendees about industry trends.

The 2025 Exhibition emphasized port electrification, alternative fuels, and infrastructure development.

The next exhibition will be held in Chicago, August 20 – 21, 2025, indicating that this clean marine movement is growing worldwide. The Electric & Hybrid Marine Exhibition is becoming a key place for sharing new ideas, working together, and aiming for cleaner oceans and greener shipping.   PSR

Download the complete Show Report here.

Natasa Mulahalilovic is Marine Pleasure Boat Analyst-Europe for Power Systems Research