Norway is to support the construction of nine more vessels to use either ammonia or hydrogen as a fuel.
It brings the total number of newbuilding projects in Norway to receive government support to 24 ships.
Six Norwegian shipowners will receive a total of NOK 943.8m from Enova, the government agency tasked with supporting the transition of the country’s economy as a result of this latest round of funds.
The Norwegian government has tripled the amount of cash Enova has available to fund climate projects to NOK 9.2bn.
Of the nine vessels announced in the latest round of funds, seven are destined to use ammonia as a fuel.
Offshore vessel owner and operator DOF Group, fresh from the acquisition of Maersk Supply Ship, has won NOK 298m for the construction of two ammonia-fuelled ships, with Aurora Offshore winning NOK 232.8m for two vessels as well.
As reported in TradeWinds Eidesvik has also won backing for an ammonia-fuelled vessel.
Grieg Group has secured NOK 79.9m to support the construction of its ammonia bunker ship.
Norbjorn AS has won backing for an ammonia-powered vessel destined to supply Svalbard with freight and post from Tromso.
It makes a total of 24 ships, which Enova has agreed to support financially this year; 11 of them are destined to be hydrogen-fuelled and 13 ammonia-fuelled.
It also offered support earlier in the year, of NOK 281m, for five battery-powered vessels and the necessary charging stations for them.
The funding round from Enova stipulates that these vessels should be built with the ability to have zero-carbon emissions from delivery, and help support and demonstrate a functioning Norwegian clean fuel economy.
“Hydrogen and ammonia are important energy carriers for the green shift, and the investment in green shipping is important,” said Norwegian climate and environment minister Tore Sandvik.
“It provides jobs all over the country and contributes to the competitiveness of Norwegian business.”
Enova said it received 31 applications for funding under these two latest calls for hydrogen and ammonia-fuelled vessels and will have further funding calls in the coming two years to support more projects.
