Enova to provide funding for Hoegh Autoliners NH3-fuelled PCTC pair

As reported by The Motorship, Höegh Autoliners has a total of 12 Aurora Class vessels on order. The vessels have been designed with engines that run on liquefied natural gas (LNG) and low-sulfur oil, and with an ammonia-ready certification from DNV.

However, in order to deliver a dual-fuel vessel capable of operating on ammonia as a fuel would require the installation of an ammonia engine along with the installation of an additional tank to maintain sufficient range.

In order to offset the additional cost of modifying two of the vessels, compared with the delivery of an ammonia-ready vessel, Höegh Autoliners applied for Enova funding to reduce the additional cost of this solution.

Each of Höegh Autoliners’ two planned ammonia vessels has been granted almost USD 7 million (NOK 73 million), with the total coming to almost USD 14 million (NOK 146 million).

The vessels will be powered by the first four ammonia 2-stroke engines that will be delivered by MAN Energy Solutions.

The Motorship notes that Enova has previously agreed to provide similar sized funding packages for short-sea vessels that are intended to operate on alternative fuels within Norwegian coastal waters, such as a NOK130m grant to Skarv Shipping in May 2023. 

Climate-neutral ammonia as fuel

The company aims to use mostly carbon-neutral ammonia as fuel from the moment the vessels enter into service. It is expected that it could take some time before availability and price reach satisfactory levels, with a gradual ramp-up expected from 2027. 

“At Höegh Autoliners, we take leadership by actively collaborating with a wide range of highly qualified and dedicated suppliers to make clean ammonia viable as a zero-emission shipping fuel. 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 realized in a short time and that there will be demand for carbon-neutral fuel. Almost all Höegh Autoliners vessels sail under the Norwegian flag and have significant Norwegian content from the Norwegian cluster,” says CEO of Höegh Autoliners, Andreas Enger. 

“The support from Enova, together with our innovative multi-fuel vessel design, significantly helps derisking the choice of bringing the first zero-carbon vessels to our industry. The race towards decarbonizing the industry will take decades, not years. Nevertheless, no progress will be made without pioneering companies taking decisive steps to shape the future,” continues Andreas Enger.