South Korea and Greece agreed Tuesday to jointly develop technologies to renovate existing ships into eco-friendly ones in response to tougher emission regulations in the global shipping sector, Seoul's industry ministry said, according to Yonhap.
Under the agreement, the two nations will carry out projects to develop technologies for the designing of propulsion systems and shipbuilding to have existing ships be fueled by liquefied natural gas, liquefied petroleum gas, methanol and other clean energy resources, according to the Ministry of Trade, Industry and Energy.
STX Engine Co. and several other South Korean firms will join hands with Greece's Hydrus, Onex and other companies, and the South Korean government will invest 4 billion won (US$3.06 million) in the projects by 2026, it added.
The move came as the International Maritime Organization (IMO) set a goal of reducing greenhouse gas emissions in the shipping sector by 50 percent by 2050 compared with 2008 levels.
Global demand has surged for eco-friendly ships amid strong environmental regulations for net-zero goals. Some 5.5 percent of the vessels currently in operation around the world adopt clean fuels, according to the ministry.