Daewoo Shipbuilding & Marine Engineering Co. (DSME) announced that it has been selected to produce South Korea’s first hydrogen fuel cell tugboat as part of a state-funded initiative.

DSME will construct a 3-megawatt-class battery-fuel cell tugboat based on its remote monitoring and control technologies, under an agreement struck with the government.

The Ministry of Oceans and Fisheries is in charge of the 23.5 billion won ($17.4 million) initiative to develop and commercialize a hydrogen fuel cell tugboat by 2026.

According to DSME, the emission-free vessel of Korean design would be entrusted with pushing or dragging ships unable to move on their own in ports or along the coast.

The majority of tugboats now operating in the country do not meet the International Maritime Organization’s carbon emission standards.

The shipyard will be able to contribute to South Korea’s carbon neutrality target and accelerate the marketing of zero-carbon boats, according to a DSME representative.

South Korea has pledged to achieve carbon neutrality by 2050 as part of its efforts to combat climate change and achieve sustainable growth simultaneously.

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