Norway allocates $112m to hydrogen and ammonia ships

Norwegian government enterprise promoting green energy initiatives Enova has unveiled its largest-ever funding allocation within the shipping sector, aimed at establishing the first functioning value chains for ammonia and hydrogen.

The award totaling NOK1.2bn ($112.3m) has been spread between six shipping companies: Höegh Autoliners and Amon Maritime for ammonia-powered vessels and Maris Fiducia, Halten Bulk, Napier and Møre Sjø for ships able to run on hydrogen.

In total, nine hydrogen vessels and six ammonia vessels are supported in this round of applications, which was launched last December.

“Climate change in shipping is absolutely necessary if we are to be able to achieve our climate goals. There are many challenges associated with the transition, but today’s record-breaking award is a big step in the right direction. I look forward to seeing what the industry can achieve in the future,” said Bjelland Eriksen, Norwegian Minister of Climate and Environment.

Norwegian car carrier player Höegh Autoliners has secured funds for the ammonia conversion of four of its twelve 9,100 ceu Aurora class vessels. Enova is expected to cover 60% of the additional costs needed to convert the quartet into ammonia-driven vessels from 2027.

The funding of NOK180m has supported Amon Maritime to launch a new venture called Amon Gas, which is targeting a shipbuilding series starting with two firm orders of ammonia-powered midsize gas carriers likely delivering in 2028.

“This is a significant milestone towards realising carbon free transportation systems within the gas carrier segment. Amon Gas will provide the market with low-emission vessels while simultaneously meeting customer demands with innovative solutions.” said André Risholm, CEO of Amon Maritime.

On the hydrogen side, the Norwegian outfit of Dutch shipowner Maris Fiducia has won NOK300m in innovation funding to develop, build and operate five 6,000 dwt bulk carriers. The vessels, designed by the Dutch ship designer Ankerbeer with HAV Group subsidiary HAV Hydrogen and Norwegian Hydrogen as subcontractors, will go on charter with Schulte & Bruns once built.

“With these pioneering projects, Norway is leading the way, and we see that the maritime industry is now at a tipping point where the transition from here can accelerate,” stated Nils Nakstad, CEO of Enova.

Enova has announced that the next application deadline for its “hydrogen and ammonia in vessels” programmes is September 27 and encouraged stakeholders and partners to engage with funding and project advisors to explore upcoming project calls and opportunities for collaboration.

The government body emphasized that for such projects to succeed, the price of hydrogen and ammonia needs to become competitive with fossil fuels, with Nakstad adding that through the support for these vessels, Enova was also establishing a demand for the fuels.

“The programme must therefore be seen in the context of future support also for hydrogen production and ammonia bunkering, and in total, we are now talking about restructuring on a completely different scale than before,” Nakstad said.