Norwegian owner Hoegh LNG has secured state funding for a project to convert ammonia into hydrogen fuel.
The company has teamed up with Finnish technology giant Wartsila on the scheme, which has now been awarded €5.9m ($6.5m) by the Norwegian government.
The cash will go into developing ammonia as a hydrogen carrier for the energy market. This is part of Norway’s Green Platform programme, and the award makes up 50% of the total budget for the project.
The two sides are also working with the Institute for Energy Technology (IFE), the University of South-East Norway, Sustainable Energy and BASF on the plan.
The project is designed to enhance the availability of large-scale storage and transport capabilities.
The aim is to develop a system to convert ammonia back to hydrogen, which will then be installed on a Hoegh LNG vessel.
“This will provide a floating receiving terminal capable of being relocated as needed, requiring minimal use of coastal land and a solution resulting in lower overall cost, improved safety and competitive hydrogen prices,” the companies said.
Hydrogen is emerging as a viable future fuel for addressing the move away from fossil fuels, they believe.
Storage and transport problems
However, they admitted it is difficult to store and transport due to its low volumetric energy density and potential large vaporisation losses.
Ammonia is significantly better suited than hydrogen for this purpose, since it can be stored in liquid form at moderate pressures and temperatures.
The companies pointed out that the infrastructure for the large-scale transport of ammonia at sea already exists via a fleet of gas carriers having ammonia on the cargo list.
Walter Reggente, vice president of Wartsila Gas Solutions, said: “This important project is a natural extension of the investments and efforts made by Wartsila to accelerate the use of decarbonised energy.
“Hydrogen will play a considerable role in future renewable fuel consumption, and there is a clear need for the development of ammonia as a storage and transportation carrier for hydrogen.”
Hoegh LNG chief executive Erik Nyheim said his company is well-positioned to support the transition to clean, carbon-free energy.
“New and innovative solutions will need to be developed and we look forward to working together to ensure we remain at the forefront of the energy transition,” he said.
In 2021, Hoegh LNG entered into a new cooperation deal with compatriot Gen2 Energy to develop a logistics chain for hydrogen.
The shipowner bought an unspecified stake in its partner.
Gen2 is aiming to build several large-scale production facilities for green hydrogen located in Norway and elsewhere in northern Europe, as well as a distribution network.
