Norway to offer investment support to hydrogen and ammonia-powered vessels

Norwegian government enterprise Enova has announced plans to launch two new competition-based support programs in the fourth quarter of this year, to offer investment support to vessels powered by hydrogen and ammonia.

PHOTO: A graphical representation of a hydrogen and ammonia-powered large vessel. Enova

“Shipowners or others can apply for investment support for vessels to be operated with hydrogen or ammonia” via these programs, Enova says.

Enova has supported the development of 16 large vessels designed to utilise hydrogen and ammonia as fuel over the past three years. It has also supported the development of five hydrogen hubs in the same time frame.

Based on this, Enova believes “that there is now a need for a targeted investment towards hydrogen and ammonia in vessels in order to realise the first profitable value chains for both solutions.” The programs - one each for hydrogen and ammonia - intend “to stimulate the demand side” and “get more vessels on the sea in the shorter term.”

Additionally, the programs will aid in reducing “the additional cost for investment and operation of hydrogen and ammonia vessels through further technology development.”

The programs have the potential to cover up to 80% of the approved additional costs incurred in the projects.

The support programs will be organised as competitions, through a process of “competitive bidding,” where rankings will primarily be based on cost-effectiveness and innovativeness of the projects.

Both programs are expected to be launched in the fourth quarter of this year, with applications opening in the first quarter of 2024. But the final schedule is subject to “when new state aid regulations come into force in Norwegian legislation.”

Enova's support program for hydrogen and ammonia-powered vessels is anticipated to run through 2026, with two calls per program each year.

By Tuhin Roy

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