Hanwha and Baker Hughes Enter into Joint Development Agreement for Ammonia Gas Turbines

◇ Hanwha Power Systems and Hanwha Ocean cooperate with global energy technology company Baker Hughes.

◇ Leading the decarbonization of the hard-to-abate marine transportation sector through fuel-flexible combustion technology.

With the goal of completely carbon-free operation of ships, Hanwha Power Systems and Hanwha Ocean(KRX: 042660) signed a Joint Development and Collaboration Agreement with Baker Hughes(NASDAQ: BKR), a global energy technology company, to design and produce low carbon ammonia gas turbines during the Baker Hughes Annual Meeting 2025 held in Florence, Italy on February 2-4.

Hanwha Group declared its vision for the world's first fossil fuel-free ship at the Davos Forum held in Switzerland in January last year. Hanwha Group plans to complete the development of liquefied natural gas carriers and container ships using the ammonia gas turbine propulsion system by 2028.

The ammonia gas turbine to be developed through this collaboration will be based upon the proven, small-size world class turbine technology of Baker Hughes, and a newly-developed ammonia combustion system created by PSM, a US-based Hanwha subsidiary. The gas turbine will be capable of 100% ammonia combustion, and dual fuel operation with a natural gas and ammonia blend. It is expected to be a game-changing technology for large ship owners, enabling a completely carbon-free mode of propulsion. In September 2023, Hanwha Power Systems and Hanwha Ocean obtained approval in principle (AIP) from the American Bureau of Shipping (ABS) to apply ammonia gas turbines to LNG carriers.

PSM successfully completed an initial high-pressure ammonia combustion test campaign and Baker Hughes completed its initial turbine feasibility studies in 2024. In addition, Hanwha Power Systems signed a memorandum of understanding (MOU) at Gastech 2024 in Houston, U.S., in September last year with a large liquified natural gas carrier shipping company in Europe to convert its propulsion system to an ammonia gas turbine based system.

Through this joint development agreement, Hanwha plans to expand technological cooperation with the goal of developing the world's first completely carbon-free ship and provide innovative solutions that lead the era of fossil fuel elimination.

Executive Director Kim Hyeong-seok, head of Hanwha Power Systems' Marine Solutions Business Department, said, “The paradigm of switching to lower carbon fuel for ships is the calling of the times, and Hanwha Power Systems will continue to lead the development of innovative technologies for the entire life cycle of eco-friendly ships.”

“This collaborative development of a low-carbon ammonia gas turbine will be a significant turning point in the global shipbuilding and shipping industry, accelerating the transition to eco-friendly fuel propulsion for ships,” said Son Young-chang, vice president and head of Hanwha Ocean’s Product Strategy Technology Institute.

Baker Hughes is a global energy technology company operating in more than 120 countries around the world, with a unique strength in small and medium-sized gas turbine technology. The synergy between the two companies is highly anticipated.

About Hanwha Power Systems

Hanwha Power Systems is a global leader in eco-friendly energy equipment and provides the highest quality products and services by possessing the original technology for the design and production of high-speed rotating equipment. In addition to our 100% oil-free compressor made with our own technology, we have recently been developing solutions for various energy equipment such as sCO2 and hydrogen turbines. In particular, we aim to lead a paradigm shift in the shipping sector by developing technologies to decarbonize the maritime industry.

About Hanwha Ocean

Hanwha Ocean is a leading global company with extensive expertise and experience in the shipbuilding and offshore industry. Boasting the world’s most competitive LNG carriers built with eco-friendly and highly efficient technology, the company has continuously pioneered new businesses since 1973, producing a vast range of vessels, including commercial ships, drill ships, and warships. Hanwha Ocean will be at the forefront of pioneering advanced marine solutions for decarbonization and further expand Hanwha’s green energy ecosystem to create positive, sustainable change worldwide. More information about Hanwha Ocean is available at www.hanwhaocean.com.

For more information, please contact:

Hanwha Power Systems Media Relations

Sung Jae Park

+82 7071474895

sungjae.park@hanwha.com