Hoegh Autoliners has firmed up orders for up to 12 zero-carbon pure car/truck carriers (PCTCs) at China Merchants Heavy Industry (Jiangsu) in China.
The Oslo-listed shipowner said the order is for four firm PCTCs plus options for up to eight sister vessels. No financial terms were disclosed.
Hoegh Autoliners signed a letter of intent for the vessels, which will be multi-fuel and ammonia ready, in early October 2021.
The Norwegian shipowner said the ships would be the first of their kind to be ready for operation on carbon neutral ammonia.
Under the terms of the contract, the first two vessels will be delivered in the second half of 2024 and the next two in the first half of 2025.
With the capacity to carry up to 9,100 cars, the Aurora class will be the world's largest and most environmentally friendly car carrier, Hoegh Autoliners said.
The vessel's multi-fuel engine will be able to run on marine gas oil and LNG.
With modifications, the vessel can transition to use future zero-carbon fuels including ammonia or methanol.
Leif Hoegh, Hoegh Autoliners chairman said: "The collaboration with China Merchants Industry represents a breakthrough in reaching our ambitious net-zero emissions target by 2040.
"The innovative design of the zero-carbon-ready Aurora class will enable our customers to decarbonise their supply chain."
China Merchant Industry has been expanding its shipbuilding business over the past two years and it is now the largest PCTC builder and the fourth largest shipbuilding group in China.
Separately, Hoegh Autoliners said the strong car carrier market had continued throughout the fourth quarter and it expects the adjusted Ebitda for the quarter to be about $78m against previous guidance of $65 to $70m.
It also anticipates a better full-year performance with adjusted Ebitda now expected to come in at about $210m against previous estimates of $195 to $200m.
Hoegh Autoliners said it expects to release its full fourth-quarter results and trading performance on 10 February.
