Norway Invests $108 Million To Develop Ammonia, Hydrogen & Electric Ships

The Norwegian government, through its Enova SF initiative, has awarded approximately $108 million in funding to 14 projects focused on the development of ammonia, hydrogen and electric ships.

The funding comes through Enova SF, the government body responsible for supporting environmental technology. Since Jonas Gahr Støre became Prime Minister in 2021, Enova’s funding has grown significantly, increasing from $290 million to over $800 million each year.

In 2024, Enova is supporting 24 vessels, including 11 powered by hydrogen and 13 by ammonia.

This round of funding received a lot of interest, with 31 applications for hydrogen and ammonia projects. Nine of those projects were chosen for funding, along with five electric vessel projects.

In total, Enova has awarded $83 million to ammonia and hydrogen projects and $25 million to electric vessels. Some of the electric projects also received funding for charging stations.

Among the ammonia-powered projects receiving support are ships from companies like Aurora Offshore, DOF Group, Eidesvik Shipping, and Grieg Ammonia.

One key project, the Green Ammonia vessel being developed by Grieg Edge, will be able to carry up to 5,000 tons of ammonia and use ammonia for 85% of its energy needs. This ship will also use batteries, shore power, and wind assistance.

The Green Ammonia project is set to be completed by 2028. Cruise Service AS also received nearly $15 million for two hydrogen-powered passenger vessels.

Enova’s funding is not just for ships, it also includes investments in infrastructure, such as charging stations for electric vessels. Around $3 million has been awarded for charging facilities to support electric ships.

In total, Enova is supporting the construction of 24 new vessels, including 13 ammonia-powered, 11 hydrogen-powered, and 5 electric vessels.

Enova is committed to continuing its support for hydrogen and ammonia over the next two years. However, the agency has made it clear that while it will fund projects, it will not subsidise the cost of the fuel itself.

They believe that investment in these technologies will help make them more affordable and competitive with traditional fossil fuels.

Minister of Climate and Environment, Tore O. Sandvik, praised the funding, saying it will create jobs and help Norwegian companies lead the way in green shipping.

Reference: fuelcellsworks

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