Ten new zero-emission vessels will receive support from Enova, further strengthening Norway’s position as the country with the world’s highest share of zero-emission ships.
Achieving climate targets requires all sectors, including shipping, to undergo a transition. Significant funding is being provided for vessels powered by batteries, ammonia and hydrogen, marking an important step towards making zero-emission solutions increasingly available for the maritime sector.
Enova plays a key role in supporting the transformation of an industry responsible for eight per cent of Norway’s emissions, said Climate and Environment Minister Andreas Bjelland Eriksen.
Enova is a state enterprise owned by the Ministry of Climate and Environment. The purpose of Enova and the Climate and Energy Fund is to contribute to meeting Norway’s climate commitments and to promote effective climate and energy transition measures on the path to a low-emission society.
Of the ten new zero-emission vessels receiving support from Enova, six will be battery-powered, two will run on hydrogen and two on ammonia. In addition, one of the projects will receive support for charging infrastructure. Payments will only be made once costs have been incurred and documented.
The aim of the ten projects that Enova is supporting with NOK 1.3 billion is to demonstrate that batteries, hydrogen and ammonia can become competitive solutions as maritime transport moves towards significantly larger emissions reductions than today
…said Acting CEO of Enova, Rune Holmen.
Accelerating the transition
According to DNV, there are 3,785 vessels operating in domestic traffic in Norway. Of these, 112 are zero-emission vessels, representing around three per cent of the fleet. Norway currently has the highest share of zero-emission ships in the world.
However, new data from Enova shows that at the current pace of transition, Norway is unlikely to meet its target of achieving zero greenhouse gas emissions from maritime transport by 2050.
A further 22 zero-emission vessels are already under construction and planned for operation in Norwegian waters. With the ten new projects now receiving funding, the transition of the maritime sector will accelerate, although zero-emission technologies remain in an early stage of development.
Electric vessels and charging infrastructure
Several of the supported projects will demonstrate how greater electrification can be achieved in maritime transport. Seistar will receive funding for a fully electric processing vessel and charging facilities, enabling emissions-free transport and processing of fish between aquaculture sites and processing plants. Watt Goodfish will receive support for two similar electric vessels.
Eitzen Avanti will receive funding for two new battery-electric container vessels. Together with two vessels that received support last year, they could form a new zero-emission container transport system between Norway and Europe. Construction of the two previously supported vessels has now been approved, with operations planned from 2029.
The vessels will be equipped with battery systems exceeding 100 MWh, making them the largest ship battery systems in the world. Nordic Sea Concept will receive support to build a fully electric cruise vessel for operation in Norwegian fjords. The vessel will be equipped with a large 20 MWh battery system.
Making zero-emission investment easier
For hydrogen and ammonia, the funding will also help establish the first functioning supply chains for zero-emission fuels in the maritime sector. LH2 Shipping will receive support for two bulk carriers powered by liquid hydrogen, while Bergen Tankers will develop two ammonia-powered tankers for Equinor.
We have already supported ammonia bunkering facilities, as well as hydrogen production and refuelling. As more ships now receive support, it is essential that production, distribution, bunkering and use of new fuels develop simultaneously. Once the first supply chains are established, it will become easier for more actors to invest in zero-emission technology
…said Rune Holmen.
On 15 June, another development emerged for the future of ammonia-powered vessels. Azane Infrastructure AS, which received Enova support last year to build three ammonia bunkering facilities, has committed to paying a penalty if the projects are not completed.
The Enova funding was provided through the “Ammonia Bunkering Facilities” programme. The three facilities will be built at the offshore ports of Mongstad, Risavika and Fjordbase.
Together, the projects supported by Enova are expected to reduce greenhouse gas emissions by more than 46,000 tonnes of CO₂ annually. This is equivalent to the yearly emissions from around 18,000 diesel passenger cars.
The direct emissions reductions created by our support for zero-emission maritime vessels are a positive additional effect. The most important impact is that these projects pave the way for a broader transformation of the maritime sector, enabling significant and lasting reductions in emissions.
…Holmen highlighted.