Skarv Shipping bags timber transport deal for its ammonia-powered newbuild

Norwegian forestry companies Viken AT Market and AT Skog have entered into an agreement with Skarv Shipping Solutions, a joint venture between Grieg Edge and Peak Group, to transport timber on zero-emission ships powered by ammonia and electricity.

Under the agreement, Viken AT Market, which ships approximately 1 million tons of timber annually, will move part of its timber transport to Skarv Shipping’s 7,800 dwt ammonia-ready general cargo self-unloader, starting in the summer of 2027.

Developed by Skarv Shipping, with support from Grieg Shipbrokers, the newbuild vessel will go on a time charter to Arriva Shipping which will manage the commercial ship operation for Viken AT Market.

As described, yhe ship is designed to sail most efficiently at low speeds, which helps ensure economically viable operations despite the higher cost of ammonia compared to traditional fuels. A 160-cubic ammonia tank, mixed with marine gas oil (MGO) as pilot fuel, will provide enough fuel for a 14-day round trip from Norway to the continent.

According to the shipowner, Chinese Huanghai Shipbuilding will build the vessel, which is expected to be delivered in the second quarter of 2027.

It is understood that the newbuild will be an updated version of the sister ships Skarv Shipping has ordered for commercial operation for Peak CSL Group.

“This is our first ship capable of sailing on ammonia from day one, allowing it to operate with minimal greenhouse gas emissions. Simultaneously, the engine is linked to an electric propulsion system that utilises batteries and has access to shore power,” said Jan Øivind Svardal, CEO of Skarv Shipping.

“The design and operation of the vessel consider the risks associated with using ammonia as fuel. Safety will be a primary focus. The ship will be outfitted with highly advanced safety systems, alongside operational safety procedures and crew training.”

Skarv Shipping Solutions was established in 2022 to initiate and develop sustainable coastal shipping in Northern Europe. The joint venture has four multipurpose ships under construction in China for commercial operation for Peak CSL, with delivery expected in the fourth quarter of 2025.