Norway awards $114m to six shipping companies for construction of 15 hydrogen- and ammonia-powered vessels

There are only a handful of small H2-fuelled ships on the water today, and none that operate purely on ammonia.

The Norwegian government has awarded NKr1.2bn ($114m) to six “pioneering” shipping companies to help them build nine hydrogen-powered vessels and six ammonia-fuelled ships as part of a programme to encourage the switch to zero-carbon maritime fuels.

It is the largest single funding allocation ever handed out to the shipping sector by government agency Enova, which said that the competition for the grants was “fierce”. Dutch shipowner Maris Fiducia received NKr300m to support the design and build of five small dry-bulk coastal carriers with dual-fuel engines that can be powered by compressed hydrogen, and additional fuel cells systems for auxilliary power.

Oslo-listed Hoegh Autoliners won NKr109.4m for four ammonia-fuelled car/truck carriers and Norway's Amon Maritime received NKr180m for two mid-sized ammonia-powered gas carriers (which can transport both liquefied petroleum gas and ammonia).

Fellow Norwegian companies Halten Bulk, Møre Sjø and Napier also won funding for hydrogen-powered vessels — but they have not revealed details about the money they have received or how it would be spent. However, Hydrogen Insight's sister publication TradeWinds says that Møre Sjø was granted NKr175m and Napier NKr123m.

The grants come from two funding programmes, “Hydrogen in Vessels” and “Ammonia in Vessels”, with a second financing round later this year.

“Climate transition in shipping is essential for us to achieve our climate goals,” said Norwegian climate and environment minister Andreas Bjelland Eriksen.

“There are many challenges associated with this transition, but today’s record-breaking allocation is a significant step in the right direction.”

Hoegh CEO Andreas Enger added: “We believe it is important for shipping companies to send a clear signal to the rest of the value chain that the technology can be realised in a short time and that there will be demand for carbon-neutral fuel.”

Only a handful of fairly small hydrogen-powered vessels — mainly passenger ferries — are in operation today, but there are no 100%-ammonia-fuelled ships on the water today. The Fortescue Green Pioneer became the first vessel ever to use ammonia as a fuel in March this year, but only in combination with diesel.