Norway is to support the construction of nine more vessels to use either ammonia or hydrogen as a fuel.
An additional five battery electric vessels have also won support.
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.
All award winners will need to make a final investment decision and order the vessels within 12 months.
It makes a total of 24 new fuel newbuildings, which Enova has agreed to support financially this year; 11 of them are destined to be hydrogen-fuelled, 13 ammonia-fuelled. It is also funding 34 battery electric vessels and one vessel to have a carbon capture system installed.
Enova has also awarded funding for the necessary charging stations for the battery electric vessels.
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.
We will continue our commitment to hydrogen and ammonia over the next two years," Enova's head of maritime Rune Holmen told TradeWinds. "It is part of a bigger strategy to establish a functional value chain for the fuels."
He said Enova will also be awarding grants in 2025 for the establishment of ammonia bunkering networks to help the market learn about the correct solutions to invest in.
He said that while more investment support will be announced in the next two years, Enova will not offer fuel subsidies.
"The market has to learn to price the fuel," he said. "we believe in investment support and that it will lead to fuels being at a cost parity to fossil fuels."
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.
Over 2024 it tightened its criteria as it launched its ammonia and hydrogen programes. earlier funding rounds included hybrid vessels with dual fuel capabilities.
