Fifteen green ship projects get $113.5M in Enova support

June 20, 2024, by Naida Hakirevic Prevljak

A total of fifteen green ship projects will receive NOK 1.2 billion (about $113.5 million) in support from Enova, a Norwegian government enterprise, in the latest round of the country’s investments in decarbonizing maritime transport.

This is “the largest-ever allocation” Enova has made to greenify domestic maritime transport.

The support was announced during an event at the DNV-led Green Shipping Programme in Høvik on June 19, 2024.

“Climate change in shipping is absolutely necessary for us to be able to achieve our climate goals. There are many challenges associated with the transition, but today’s record-breaking award is a big step in the right direction. It is very positive to see that Enova can play an important role in the transformation of shipping. I look forward to seeing what the industry can achieve in the future,” Andreas Bjelland Eriksen, Minister of Climate and Environment of Norway, commented.

As informed, a total of nine hydrogen and six ammonia vessels have been supported in this round of applications. The companies are Höegh Autoliners and Amon Maritime (ammonia) and Halten Bulk, Napier, Møre Sjø and Maris Fiducia (hydrogen).

“The competition was fierce, and there were many good projects that unfortunately did not quite make it. It bodes very well for the further investment and the next round of applications. With these pioneering projects, Norway is leading the way, and we see that the maritime industry is now at a tipping point where the transition from here can accelerate,” Nils Kristian Nakstad, CEO of Enova, said.

The purpose of the support program, which was launched in December 2023, is to establish the first functioning value chains for ammonia and hydrogen for maritime purposes. In order to succeed in this, the price of hydrogen and ammonia must also become competitive with fossil fuels. Enova’s support programs for production and infrastructure want to contribute to narrowing this price gap.

“Enova will contribute to establishing a well-functioning first market for zero-emission transport at sea. Through the support for these vessels, we are now establishing a demand for the fuels. The program must therefore be seen in the context of future support also for hydrogen production and ammonia bunkering, and in total we are now talking about restructuring on a completely different scale than before,” Nakstad added.

The Enova programs support projects that invest in new or converted hydrogen and ammonia vessels. 

The next deadline for applying for the hydrogen and ammonia vessels is September 27.

In related news, Norway recently strengthened maritime collaboration with Singapore, aiming at positioning Norwegian suppliers at the forefront of the Southeast Asian maritime market and supporting the transition to greener shipping practices. The two countries want to drive the adoption of alternative marine fuels, including hydrogen and ammonia.