Norway allocates over $120 million to advance zero-emission fuels in shipping, aiming for significant CO₂ reductions and new industrial leadership.
Norway has announced a new funding grant exceeding $120 million to support the transition to zero-emission fuels across various sectors, particularly in shipping. This support, provided through the state agency Enova under the Ministry of Climate and Environment, aims to help the country achieve its decarbonization goals and develop leadership in new industrial sectors.
The investment round focuses on seven vessels that demonstrate the potential of zero-emission maritime transport and are leaders in their segments. Approximately $100 million has been allocated for three large ammonia-fueled bulk carriers and four coastal bulk carriers that will operate using different forms of hydrogen. Enova states that these projects will result in an annual reduction of 92,000 tons of CO₂ emissions.
In parallel with the project, the establishment of Norway's first three ammonia fuel supply stations in Western Norway has also been included in the support scope.
LH2 Shipping, in partnership with Strand Shipping Bergen under the Vertom Group, has received approximately $29 million in additional financing for the construction of two liquid hydrogen-powered bulk carriers. The company had previously received support for two vessels in an earlier funding round, and with the latest grant, the fleet plan has been expanded to four vessels.
The new ships will be 7,700 dwt capacity bulk carriers aimed at short-distance maritime transport, primarily carrying bulk and general cargo between Northern Norway, the Baltic region, and Europe. The vessels are planned to be 108 meters in length.
The ships will feature hydrogen systems with a storage capacity of 17 tons of liquid hydrogen (LH2), 3.5 MW PEM fuel cells, and battery packs with a capacity of approximately 1.5 MWh. Additionally, the vessels will be able to utilize shore power when available in ports. To address potential delays in hydrogen supply, a backup generator system capable of operating on diesel/biodiesel will be installed.
Enova is also providing grants for the construction of two coastal bulk carriers by GMI Rederi. These vessels will be equipped with compressed hydrogen fuel cells, batteries, and wind-assisted propulsion systems, and will be used for transporting asphalt and construction materials along the Norwegian coast.
Meanwhile, Amon Bulk has received approximately $29 million in support for three ammonia-fueled Kamsarmax bulk carriers with a capacity of around 80,000–85,000 dwt. The company stated that the vessels are designed to meet the needs of the European steel industry and are a continuation of two previously announced ships. All five vessels are planned to be delivered between 2029 and 2030.
To support the new vessels, Enova has also allocated an additional $43 million for three ammonia fuel supply stations to be established along the coast of Western Norway. Norwegian technology company Azane Fuel Solutions is developing the stations to be located in Mongstad, Florø, and Risavika. The stations are expected to have a capacity of up to 2,000 cubic meters of refrigerated ammonia and a refueling rate of over 100 tons per hour. Azane has one year to make its final investment decision.
Enova officials emphasized the critical importance of early leadership in these emerging areas, expressing their belief that Norway will hold a strong position globally in zero-emission shipping.
Source: www.denizhaber.com
