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Norway releases over €100m for green ship engines

The Norwegian state-owned company “Enova” is releasing over €100m for the conversion of ships to ammonia and hydrogen engines. A total of six companies will benefit from the funding.

Norwegian companies have been able to apply for subsidies from Enova since December. The deadline has now passed and the winners have been announced. The aim of the funding is to create functioning, sustainable supply chains for ammonia (NH3) and hydrogen (H2) as fuels in the shipping industry.

Norway funds more than ever before

The funding pot of  NOK 1.2bn (equivalent to €106.3m) is larger than ever before. The money will be divided between six companies and a total of 15 ships – six NH3 and nine H2. Höegh Autoliners and Amon Maritime will use the money for the conversion to NH3. Maris Fiducia, Halten Bulk, Napier and Møre Sjø, on the other hand, are converting their vessels to H2.

“A change in shipping is absolutely necessary if we want to achieve our climate targets,” says Bjelland Eriksen, Norwegian Minister for Climate and Environment. There are many challenges in this transition, but the tender is a big step in the right direction. “I look forward to seeing what the industry can achieve in the future.”

Höegh will convert four of its twelve 9,100 CEU cars to NH3 by 2027. The funding from Enova is expected to cover around 60% of the costs.

NOK 300m from the pot (around €26m) will go to Maris Fiducia. This will be used to develop, build and operate five bulkers of 6,000 dwt each – entirely with H2. After construction, the bulkers will be chartered out to the German shipping company Schulte & Bruns.

Norway / Höegh, Autoliner, Enova, ammonia
Norway supports six companies in total, among others Höegh Autoliner

Enova boss looks to the future

Nils Nakstad, CEO of Enova, is optimistic about these projects. “We see that the maritime industry has reached a tipping point from where the transition will be faster,” he said. Norway is leading the way.

For success, it is important that NH3 and H2 become affordable in order to compete with fossil fuels. However, Enova is helping to boost demand for the alternatives. “The program must be seen in the context of future support for hydrogen production and ammonia bunkering,” said Nakstad. “We are talking about restructuring on a completely different scale than before.”

The next call for proposals for the “Hydrogen and ammonia in vessels” program will end on 27 September. Most of the funding comes from the Norwegian Energy Fund, which is fed by levies on electricity tariffs, for example.

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Copyright: © Höegh Autoliner

Caption: Norway supports six companies in total, among others Höegh Autoliner