Maritime technology group Wärtsilä on Friday (18 December) said it will be jointly running a project with Grieg Edge, the innovation hub of Norwegian shipping group Grieg Star, to launch an ammonia-fuelled tanker that produces no greenhouse gas emissions by 2024

With Norwegian government support worth NOK 46.3 million NOK (USD 5.3 million) under the Pilot-E funding scheme, the partnership aims to build the world’s first green ammonia fuelled tanker.

The MS Green Ammonia will be a vital link in the new green ammonia value chain and the vessel will start sailing in 2024 to set a new benchmark for future low emission vessels.

The project is the result of a Nordic industrial collaboration group founded from the Zeeds (Zero Emissions Energy Distribution at Sea) initiative.

“We regard the funding from Pilot-E as a valuable stamp of approval for our plans. Both Wärtsilä and we feel confident that this project represents the future for the maritime sector,” said Nicolai Grieg, Head of Grieg Edge.

“To have the support from the Norwegian Research Council and Innovation Norway is a significant step towards completion.”

“This year’s grants show that the Norwegian maritime industry is really at the forefront of developing emission-free solutions with great export potential. This is another great example of how we create new green industry and growth in Norway,” said Norwegian Minister of Trade and Industry, Iselin Nybø.

The partners said they plan to have MS Green Ammonia distribute green ammonia from a planned factory in Berlevåg, Norway to various locations and end-users along the coast.

The eventual design, size, and volume of the vessel will be dependent on the market and end-user interest. However, the project has already established Letters of Intent (LOI) with several heavyweight industrial partners.

“We see a strong interest from owners of ferries, offshore supply ships, fishing vessels, and from energy-producing companies. In total, they require an amount of energy surpassing what we can achieve in this project. The market is there without a doubt,” said Vidar Lundberg, Chief Business Development Officer, Grieg Star Group.

“Norway, with its high number of vessels using LNG or alternative fuels, with high volumes of green energy, and the cheapest electrical power in Europe, is probably the perfect arena for the world’s first market for green ammonia.”

Ship owners operating LNG-fuelled vessels represent a significant source of potential customers. Depending on the engine type, ammonia could be mixed with the LNG, or alternatively, the engine could be easily retrofitted to use only ammonia.

“We are in the midst of a transition to low carbon shipping, and the long traditions we have in Norway for cross industry cooperation is vital for the successful implementation of a new green value chain,” added Cato Esperø, Head of sales Wärtsilä Norway.

“The projects that now receive support through Pilot-E will make important contributions to the development of hydrogen and ammonia as alternative zero-emission fuels for various vessel categories,” noted Norway’s Minister of Climate and Environment, Sveinung Rotevatn.

Photo credit: Wärtsilä
Published: 21 December, 2020