With Norwegian government support worth 46.3 million NOK (4.4 million EUR), the partnership aims to build the world's first green ammonia fuelled tanker.
The technology group Wärtsilä and Grieg Edge, the innovation hub of Norwegian shipping group Grieg Star, are jointly running a project to launch an ammonia-fuelled tanker producing no greenhouse gas emissions by 2024. The MS Green Ammonia project is the result of a Nordic industrial collaboration group founded from the Zeeds (Zero Emissions Energy Distribution at Sea) initiative. Pilot-E, the Norwegian funding scheme will support the project with a NOK 46,3 million (EUR 4.4million) grant.
"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. To have the support from the Norwegian Research Council and Innovation Norway is a significant step towards completion," says Nicolai Grieg, Head of Grieg Edge.
"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," says Norwegian Minister of Trade and Industry, Iselin Nybø.
The partners 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," says 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. Through fruitful collaboration with custumers, Wärtsilä has been at the forefront of developing marine applications for LNG, hybrid systems, and fuel cells. We are excited to be contributing to this important demonstration project for green ammonia together with a forward leaning ship owner such as Grieg Edge, and the other collaborating partners”, says 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," says Norway’s Minister of Climate and Environment, Sveinung Rotevatn.
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Image caption: The MS Green Ammonia will be a vital link in the new green ammonia value chain. The vessel will start sailing in 2024 and will set a new benchmark for future low emission vessels.
Wärtsilä Marine Power in brief
Wärtsilä Marine Power leads the industry in its journey towards a decarbonised and sustainable future. Our portfolio of engines, propulsion systems, hybrid technology, and integrated powertrain systems deliver the reliability, safety, and environmental performance that Wärtsilä’s Smart Marine vision encompasses. We offer our customers performance-based agreements, lifecycle solutions, and an unrivalled global network of maritime expertise.
Wärtsilä in brief:
Wärtsilä is a global leader in smart technologies and complete lifecycle solutions for the marine and energy markets. By emphasising sustainable innovation, total efficiency and data analytics, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2019, Wärtsilä’s net sales totalled EUR 5.2 billion with approximately 19,000 employees. The company has operations in over 200 locations in more than 80 countries around the world. Wärtsilä is listed on Nasdaq Helsinki.