Hanwha Defense CEO Son Jae-il, second from left, holds a memorandum of understanding (MOU) with Kim Song-yop, third from left, who is in charge of the Danfoss business in Northeast Asia at Hanwha’s office in Seoul on Jan. 13. Photo courtesy of Hanwha Defense

Korea’s military giant cooperating with Danish behemoth

Hanwha Defense, South Korea’s top-tier military company, has teamed up with Danfoss, a Danish multinational company that offers products in infrastructure, food supply, energy efficiency, and climate-friendly solutions.

Hanwha announced on January 14 that the Seoul-based corporation had signed a memorandum of understanding (MOU) with Danfoss Korea earlier this week.

Under the partnership, the two outfits will cooperate in the project of electrifying the propulsion system of ocean-going vessels and coastal ships.

In achieving the tasks, Hanwha expects that the two-way alliance will generate a great synergy effect in consideration of the two players’ competitive edge in respective areas.

Hanwha holds advanced technology in energy storage system for ships while Danfoss is a powerhouse in power conversion system _ the two systems are a must for electricity-activated boats.

Even before the MOU of this week, the two entities have teamed up to bid for public projects of providing hybrid electric technology for government-owned vessels.

In addition, the electric vessels are dubbed as future cash cows because of the regulatory requirements.

For example, the International Maritime Organization strengthens green-house gas emission regulations while the European Union introduces the Emissions Trading System.

Against this backdrop, a mounting number of companies order eco-friendly electric ships or hybrid vessels.

The Korean government also launched the Green Ship-K initiative to accelerate the development of eco-friendly shipping _ the eventual goal is to address marine pollution issues by securing technology of reducing greenhouse gas emissions by more than 70 percent.

Toward that end, the Seoul administration encourages low-carbon ship technologies, promoting the use of LNG and electricity instead of traditional fossil fuels.

“I am delighted to join hands with Danfoss Korea, which has technical competitiveness in such products and solutions as power conversion system,” Hanwha Defense CEO Son Jae-il said.

“We will join forces to develop eco-friendly shipping technology in tandem with government policies like the Green Ship-K initiative.”

Kim Song-yop, who takes charge of the Danfoss business in Northeast Asia, took part in the MOU-signing event at Hanwha’s office on Jan. 13.