Norway funding targets clean shipping’s 'chicken-and-egg' problem

Ammonia and hydrogen bunkering face a scaling challenge, with ships waiting for fuel availability while fuel projects wait for ships to commit — a problem that the Norwegian climate agency Enova’s latest funding aims to address by supporting both bunkering infrastructure and new vessels.

IMAGE: Illustration of an Azane ammonia bunkering operation. Azane Fuel Solutions

Enova has announced a grant of 442 million Norwegian Krone ($43 million) to marine technology firm Azane Fuel Solutions (Azane) to develop three ammonia bunkering terminals along the Norwegian coast.

The three terminals will be located at Florø, Risavika and Mongstad and will each have a capacity of 2,000 cbm of refrigerated ammonia and a bunkering rate of more than 100 mt/hour.

If the investment decision is finalised within a year, the bunkering facilities are expected to be operational by 2029 and will supply both international and coastal ammonia-powered ships.

“When the industry now knows that there will be more well-located filling stations along the coast, it will be easier to invest and build vessels. This will speed up the necessary transition that is now taking place at sea,” Enova's senior advisor for maritime transport Børge Noddeland said.

Enova has previously funded five facilities that will produce hydrogen for vessels operating along the coast. These facilities, currently under development, will form part of a hydrogen production and bunkering network, spanning locations from Tønsberg in the southeast to Bodø in the north.

Demand

Aiming to boost bunker demand for ammonia and hydrogen, Enova will also provide around NOK 1 billion ($98 million) to support the development of seven vessels, three of which will run on ammonia and four on hydrogen.

Of the total funding, Amon Maritime’s subsidiary Amon Bulk has received NOK 298 million ($29 million) to build three ammonia dual-fuel bulk carriers.  

These vessels will be used to transport iron ore to the European steel industry. Amon Bulk has signed an agreement with Azane for the supply of ammonia for these vessels.

Amon had also received funding from ENOVA earlier this year for two separate ammonia-powered bulk carriers.

Additionally, LH2 Shipping along with its partner Strand Shipping Bergen will receive NOK 299 million ($29.4 million) for the construction of two liquid hydrogen-powered general cargo vessels.

The vessels will bunker Norwegian-produced hydrogen and will operate between Northern Norway and the European continent, Enova said.

LH2 Shipping had also secured separate funding this year from Enova for the development of two liquid hydrogen-fueled bulk vessels.

Apart from this, GMI Rederi will build two bulk-carriers that will transport asphalt and construction materials along the Norwegian coast. Those ships will be filled with compressed hydrogen in Tønsberg, Kristiansund and Bodø.

Enova will also expand its funding scheme next year to include existing vessels scheduled for retrofits with ammonia- or hydrogen-capable primary propulsion, even if they do not operate on these fuels continuously.

According to DNV’s latest data, there are three ammonia-capable vessels in operation with another 45 vessels on order for delivery through 2030.

By Nachiket Tekawade

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