Swan Defence and Heavy Industries Limited (SDHI) has achieved a significant maritime milestone by securing a major shipbuilding contract from Australia-based Energy ONE Limited.

The agreement involves the construction of four large ammonia dual-fuel bulk carriers, each boasting a deadweight tonnage (DWT) of 92,500. This project is particularly notable as it marks the first time such ammonia-powered vessels will be constructed within India.

The contract is officially classified as a Category 4 order, with an estimated valuation ranging between approximately ₹1,500 to ₹3,000 Crores. This substantial deal underscores the growing international confidence in the Indian shipbuilding sector and highlights the advanced technical capabilities currently being cultivated at the Pipavav shipyard in Gujarat.

Technologically, these vessels represent the vanguard of green maritime solutions. Measuring approximately 229.5 metres in length with a beam of 37 metres, they will be equipped with sophisticated ammonia-fuelled propulsion systems designed to significantly reduce greenhouse gas emissions. This aligns with the global shipping industry’s aggressive transition towards decarbonisation and sustainable fuel alternatives.

The project involves high-level international collaboration, with the vessels being designed by South Korean firm KMS-EMEC. To ensure the highest safety and quality standards, the ships will be classed by Det Norske Veritas (DNV), a leading global authority in maritime classification. This partnership ensures that the pioneering ammonia fuel technology meets rigorous international regulatory frameworks.

The delivery schedule for the fleet is set to begin in October 2029. Following the completion of the inaugural carrier, subsequent vessels are expected to be delivered at four-month intervals. This structured timeline reflects the scale and complexity of the project, which ranks amongst the largest commercial shipbuilding endeavours ever undertaken at a domestic Indian facility.

Vivek Merchant, Director of SDHI, noted that winning the contract is a vital step for the company, reflecting its commitment to future-ready maritime infrastructure. He highlighted that while ammonia as a marine fuel is still in its infancy, SDHI is proud to be an early adopter in a transition that will define the future of the industry.

Following the announcement, the market responded positively, with Swan Defence shares reaching their upper circuit limit on the stock exchanges. This financial enthusiasm mirrors the strategic importance of the deal, which positions SDHI—formerly known as Reliance Naval and Engineering—as a key player in the next generation of global, eco-friendly commercial shipping.

IDN (With Agency Inputs)