Enova to provide funding for NH3-fuelled coaster orders

The grant will allow Skarv Shipping, a group that was established in late 2022, to move ahead with agreeing firm commercial agreements with our clients and initiating the contracting and construction of the ships, Jan Øivind Svardal, CEO of Skarv Shipping Solutions commented.

Skarv Shippiong plans to place an order for ammonia-fuelled 4,000 dwt bulk carriers, which are expected to operate in short-haul shipping along the Norwegian coast, from northern Norway and south to the Oslo Fjord.

The project is noteworthy as the vessels are likely to be powered by Wärtsilä’s ammonia engine, making the vessels one of the world’s first to be powered by four-stroke ammonia engines.

The vessel is expected to lower emissions by up to 90% compared to traditional vessels, thanks to the use of innovative technologies including batteries, rotor sails, and energy-efficient hull design in the design. One of Skarv Shipping’s owners, Grieg, has specific experience in the development of an ammonia-fuelled ship, MS Green Ammonia. 

“Enova’s support is invaluable in developing our plan to reduce CO2 emissions in Norway’s coastal maritime sector. We have poured considerable resources into crafting a shipping and logistics concept that we are absolutely positive can be taken to market to ensure the utmost safety, efficiency, and dependability. We have maintained constant dialogue with our customers throughout the process,” says Jan Øivind Svardal, CEO of Skarv Shipping Solutions. 

“The next big step in transforming shipping is the transition to zero-emission fuel. This ground-breaking project will lead the way and show the way for short-haul shipping to adopt a wide range of zero-emission solutions, including the use of green ammonia. I look forward to following the development,” says Climate and Environment Minister Espen Barth Eide (Ap).