Vard has won the contract to build the world’s first fully autonomous commercial vessel, the Yara Birkeland, for compatriot shipowner Yara International.

Oslo-headquartered Vard bagged the NOK 250m ($29.6m) deal to build the 120-teu unmanned vessel and deliver it for launch in the first quarter of 2020, Yara announced in a statement today.

Yara Birkeland is to be delivered from Vard Brevik in Norway, and the hull will be delivered from Vard Braila in Romania.

The project has received NOK 133.6m in support from the Norwegian government enterprise ENOVA. Prime minister Erna Solberg was present for the signing at the shipyard in Brevik, Norway.

Prime Minister of Norway Erna Solberg was present for the signing at the ship yard in Brevik, Norway. Photo: Kongsberg Maritime

Yara Birkeland is designed for coastal trade in Norway, and will gradually move from manned operation to fully autonomous operation by 2022, Yara said.

Plans for a fully unmanned vessel were announced by engineering firm Kongsberg and Yara in May last year. The project was initiated in an effort to improve the logistics at Yara's Porsgrunn fertilizer plant.

The new autonomous battery-driven container vessel will move transport from road to sea and reduce noise and dust emissions, improve road safety, and combat NOx and CO2 pollution.

“We are honored to be chosen as Yara's partner in this innovative and exciting project,” said Vard chief executive Roy Reite.

“With a longstanding experience in building state-of-the-art and tailor-made specialised vessels, we are excited to be given the opportunity to build the world's first autonomous and electric-driven container vessel.”

“Vard combines experience in customized ship building with leading innovation, and will deliver a game-changing vessel which will help us lower our emissions, and contribute to feeding the world while protecting the planet," said Yara chief executive Svein Tore Holsether.