Norway’s Amon Maritime has set up a new company to order ammonia-fuelled gas carriers backed by a state grant.
Amon Gas will build two low-carbon midsize gas carriers (MGCs) using a NOK 180m ($17m) award from energy transition agency Enova.
Amon Maritime chief executive Andre Risholm said: “This is a significant milestone towards realising carbon-free transportation systems within the gas carrier segment.
“Amon Gas will provide the market with low-emission vessels while simultaneously meeting customer demands with innovative solutions.”
The initial order will be for two firm ships for delivery in 2028. They are viewed as the first in a series.
The vessels are designed to use ammonia as fuel, for propulsion and power consumption, including when transporting LPG as cargo.
Mosvolds Rederi-backed Amon Maritime said MGCs are large ships with high fuel consumption.
“This means that the climate impact per ship by switching to ammonia as fuel will be significant,” it added.
Its carbon emission calculations give an estimated 87% reduction compared with conventional vessels from the start of operations, with ambitions for further reductions towards 100%.
Amon Maritime chief technology officer Steinar Kostol said: “If ammonia is the fuel of the future, it will lead to a high growth in sea transport of ammonia. Ammonia is primarily transported on MGCs today.
Chicken and egg problem solved?
“If the ship transports ammonia, the ‘chicken and egg’ dilemma of making bunkering available is avoided — the substance is already on board as cargo.
“Because the ship is already designed for transporting ammonia, the relative additional cost in this segment compared to conventional ships will be less than in most other segments.”
The move into gas shipping is a departure from Amon Maritime’s previous focus on ammonia-powered bulkers through its Viridis Bulk Carriers joint venture.
Last September, Viridis received NOK 152m to build two ammonia-fuelled shortsea vessels, while Yara Clean Ammonia and Viridis affiliate Azane Fuel Solutions bagged NOK 48m for an ammonia bunkering barge.
Viridis is also backed by Mosvolds Rederi and Navigare Logistics.
Azane is a joint venture of Amon Maritime and EConnect Energy.
The Amon Gas grant was one of several handed out to shipowners by Enova on Wednesday.
The subsidies totalled NOK 1.2bn in ammonia and hydrogen shipping.
Among the winners were Maris Fiducia, which received NOK 300m for hydrogen-powered bulkers, and Hoegh Autoliners, which was given NOK 109m for ammonia-fuelled car carriers.
