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Norway Allocates $112 Million for Hydrogen and Ammonia-Powered Ships

Enova, the Norwegian government enterprise dedicated to promoting green energy initiatives, has announced its largest-ever funding allocation in the shipping sector. This investment aims to establish the first functional value chains for ammonia and hydrogen-powered vessels.

The award, totaling NOK 1.2 billion ($112.3 million), is distributed among six shipping companies: Höegh Autoliners and Amon Maritime for ammonia-powered ships, and Maris Fiducia, Halten Bulk, Napier, and Møre Sjø for hydrogen-powered vessels. This funding supports nine hydrogen vessels and six ammonia vessels, following a call for applications launched last December.

“Climate change in shipping is absolutely necessary if we are 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.

Höegh Autoliners, a Norwegian car carrier company, 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 for these conversions, set to start in 2027.

Amon Maritime has received NOK 180 million to launch Amon Gas, a new venture targeting a shipbuilding series that begins with two ammonia-powered midsize gas carriers, likely to be delivered in 2028. “This is a significant milestone towards realizing carbon-free transportation systems within the gas carrier segment. Amon Gas will provide the market with low-emission vessels while meeting customer demands with innovative solutions,” said André Risholm, CEO of Amon Maritime.

On the hydrogen front, the Norwegian outfit of Dutch shipowner Maris Fiducia has won NOK 300 million in innovation funding to develop, build, and operate five 6,000 dwt bulk carriers. These vessels, designed by Dutch ship designer Ankerbeer with HAV Group subsidiary HAV Hydrogen and Norwegian Hydrogen as subcontractors, will be chartered by Schulte & Bruns once completed.

“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 the next application deadline for its “hydrogen and ammonia in vessels” programs on September 27 and encourages stakeholders to engage with funding and project advisors for upcoming opportunities.

The government body emphasized that for these projects to succeed, the price of hydrogen and ammonia must become competitive with fossil fuels. Nakstad added that Enova’s support for these vessels is also creating demand for these fuels. “The program must therefore be seen in the context of future support for hydrogen production and ammonia bunkering. In total, we are now talking about restructuring on a completely different scale than before,” Nakstad said.

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