Oslo-listed Hoegh Autoliners has won a further handout from the Norwegian state to help fund its new ammonia-fuelled car carriers.
The company said it has been granted NOK 109.4m ($10.3m) from energy transition agency Enova to ensure four of the new ships can run fully on the low-carbon fuel on delivery in 2027.
The award is part of NOK 1.2bn ($114m) in new grant funding by Enova — its biggest-ever funding round for shipping projects.
When added to the NOK 146m it received from Enova for two other Aurora-class vessels in March, funding amounts to NOK 255.4m.
The company has 12 Aurora ships under construction at China Merchants Heavy Industry Jiangsu in China.
Hoegh said the money is part of the largest-ever Enova funding round.
Chief executive Andreas Enger added: “We believe it is important for shipping companies to send a clear signal to the rest of the value chain that the technology can be realised in a short time and that there will be demand for carbon-neutral fuel.”
“The support from Enova, together with our innovative multi-fuel vessel design, significantly helps de-risking the choice of bringing the first zero-carbon vessels to our industry,” he added.
Enova chief executive Nils Kristian Nakstad said competition for cash was fierce and there were many good projects that did not make the cut.
“It bodes very well for the further investment and the next round of applications. With this and the other pioneering projects that are now being awarded, Norway is leading the way, and we see that the maritime industry is at a tipping point where the transition can accelerate from here,” he added.
Zero-emissions target
Hoegh is aiming for zero emissions by 2040.
The 9,100-ceu newbuildings will be the largest and most environmentally friendly pure car/truck carriers ever built, the company says.
“Public-private collaboration is crucial for advancing the maritime green transition, particularly in implementing mechanisms to lower the cost of sustainable fuels until they reach parity with fossil fuels in the years to come,” Hoegh chief operations officer Sebjorn Dahl said.
