Korean shipbuilders drive electric-propulsion push with batteries and nuclear in Shipbuilding News 23/03/2026 As environmental regulations tighten in line with the global decarbonization trend and the shipbuilding and shipping industries accelerate the development of eco-friendly ship technologies, marine engine makers are also moving in earnest to enter the electric-propulsion vessel market. Companies are drawing attention as they pursue different strategies around a market for electric-propulsion vessels that has only just begun to take shape. According to the industry on the 21st, Hanwha Engine plans to complete the acquisition of the MDS division of Hanwha Aerospace within this month and move to expand its business scope. The MDS division oversees work related to energy storage systems (ESS) for ships. At the end of December last year, it said it would acquire 100% equity in SEAM AS, a Norwegian specialist in electric propulsion and power automation systems, for about 2 billion Norwegian kroner (about 308 billion won). Hanwha Engine’s electric-propulsion power is expected to be applied first to small vessels. Because the battery spins a motor to drive the propeller, there is a limit to battery loading. The newly acquired SEAM AS also specialized in small vessels that ply the Norwegian coast. Norway holds 42% of Europe’s entire electric-propulsion vessel market and is leading the early market. With coastal characteristics and even a mandate for eco-friendly ferries, it is also called a test bed for the electrification of ships worldwide. Even counting vessels scheduled for delivery, only 1,346 electric-propulsion ships have been delivered to the global market. Hanwha Engine acquired a leading company to enter a market that is in its formative stage quickly. The industry believes that as the market matures, the technology will gradually become applicable to large ships. An official at a shipbuilder said, “Electric-propulsion vessels are similar to the trend in the electric vehicle market,” adding, “Only when battery technology advances to increase energy density and charging infrastructure is built can it be applied to large ships.” HD Hyundai is targeting the market with a different approach that uses nuclear power as the energy source. On the 9th, it signed a joint development agreement with the American Bureau of Shipping (ABS) for a “concept design of a nuclear-linked electric propulsion system” and agreed to cooperate in areas such as the basic design of a nuclear-linked electric propulsion system. The goal is to develop a customized power management system applicable to large container ships capable of long-duration operation. HD Hyundai plans to launch the propulsion drive, the core of electric-propulsion vessels, in 2028 with the goal of commercializing electric propulsion for large ships by 2030. To that end, in May 2024 it also signed a cooperation agreement with ABS to develop a high-voltage direct current transmission and distribution system for ships and to establish class rules. MVDC is a technology that transmits high-voltage power as direct current and can increase power integration efficiency by up to 20% when applied to large electric-propulsion vessels. Environmental regulations are driving the growth of the electric-propulsion vessel market. Norway requires passenger ships and ferries that pass through certain areas, such as fjords designated as UNESCO World Heritage sites, to operate with zero-emission navigation