Enova, a Norwegian state-owned entity, has unveiled a substantial investment of $110 million (approximately NOK 1.2 billion) earmarked for the development of nine hydrogen-powered vessels and six ammonia-fueled vessels. Among the selected companies for the ammonia projects are industry leaders such as Høegh Autoliners and Amon Gas. Meanwhile, the hydrogen initiative will see active participation from prominent names including Maris Fiducia, Møre Sjø, Napier, and Halten Bulk.

The announcement comes as a part of Enova's ambitious agenda launched last December, titled ‘Hydrogen in Vessels’ and ‘Ammonia in Vessels,’ aimed at establishing robust value chains for maritime applications of hydrogen and ammonia. This strategic move not only underscores Norway's commitment to sustainable maritime solutions but also positions the country as a frontrunner in the global energy transition.

The funding programs cater to both the construction of new vessels and the conversion of existing ships to hydrogen and ammonia propulsion systems. Applicants underwent rigorous evaluation, with considerations such as cost-effectiveness and project maturity, with a significant emphasis on the former, accounting for 70% of the evaluation criteria. Enova's increased funding support, covering up to 80% of approved additional costs, signifies a substantial boost from the previous allocation of 40%, fostering a conducive environment for innovation and investment in sustainable maritime technologies. As Enova gears up for the next phase, with the upcoming application deadline set for September 27, 2024, the maritime industry eagerly anticipates further advancements in clean energy solutions for vessel propulsion.

Nils Kristian Nakstad, CEO of Enova, explained that Enova would help establish a well-functioning initial market for zero-emission maritime transport. He stated that through the support for these vessels, they were creating demand for these fuels. Underlining the importance of a comprehensive approach, he stressed that this program needs to be viewed alongside upcoming initiatives supporting hydrogen production and ammonia bunkering. This combined effort signifies a fundamental shift – we're no longer looking at incremental change, but a large-scale transformation that goes far beyond the program itself.

Enova's commitment to fostering sustainable solutions in maritime transport reflects its broader mission to drive innovation and investment in clean energy across various sectors. By allocating significant funding to support the development of hydrogen and ammonia-powered vessels, Enova is not only catalyzing the transition towards zero-emission maritime transport but also stimulating demand for alternative fuels. This strategic approach aligns with Enova's overarching goal of reducing carbon emissions and promoting energy efficiency in Norway.

Nakstad further added that despite the competition being tough, with good projects not making it through to the funding, these pioneer projects would lead the way in Norway. He observed that the maritime industry was now at a tipping point where the transformation could accelerate.