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Swan Defence Secures Major Order for Ammonia-Fuel Ships

Prime Highlights

  • Swan Defence bags major Category 4 order for ammonia-powered bulk carriers.
  • Project marks India’s entry into advanced green shipbuilding.

Key Facts

  • Four vessels to be delivered in phases starting October 2029.
  • Each ship to carry 92,500 tonnes with ammonia-based fuel system.

Background

Swan Defence and Heavy Industries Ltd.’s shares drew attention in the first week of April after the company announced a major shipbuilding contract involving advanced fuel technology. The company said it has won a major Category 4 order from Energy ONE Ltd. to build four large ammonia-powered dual-fuel bulk carriers, marking an important step for India’s shipping industry.

The contract falls within the company’s highest order classification bracket, which uses a valuation system that ranges between ₹1,501 crore and ₹3,000 crore. According to the company, this project represents the first instance of ammonia dual-fuel vessels being constructed in India. The project is one of the largest commercial shipbuilding works done at an Indian shipyard, showing that the company can handle bigger projects and has improved its technology and skills.

Each ship can carry up to 92,500 tonnes of weight. A vessel will be 229.5 metres long and 37 metres wide. The ships will run on ammonia fuel, which is a cleaner and more eco-friendly option for the future. A South Korean company created the design for the vessels, which will be monitored by a top international classification organization to ensure safety and operational standards.

The first ship will be delivered on October 29, followed by the rest of the ships at a four-month interval. Management stated that ammonia as a marine fuel is still in its early stages, but the company aims to align itself with the future direction of the global shipping industry.

The stock market showed positive performance when it closed the previous trading day. The company experienced a drop in value during the past month, yet maintained strong returns, which demonstrated ongoing interest from investors in its future development.