In our Analyst Update from November 06, 2024 we outlined how Norway’s Enova has awarded NOK 777 million (EUR 65 million) in support to five coastal hydrogen production projects targeting the country’s maritime sector and supporting the scale-up of low-carbon fuel supply. This time, Enova follows up by turning to the demand side for low-carbon shipping fuels by awarding funding for seven ammonia-powered ships and two hydrogen-powered ships. In the same round, five electric ships and one charging facility were also supported. The support is granted within the Enova’s three programs targeting the sector; “Ammonia in vessels”, “Hydrogen in vessels”, and “Batteries in zero-emission ships”. The ships supported are designed for zero emissions and will be able to operate emission-free from day one.

With the current announcement of the NOK 940 million support, Enova aims to demonstrate that hydrogen and ammonia as zero-emission solutions for the maritime industry can be established, building up the first functional value chains for hydrogen and ammonia in Norway. Such value chain build-up is highly dependent on establishing demand and supply and bringing them together with long-term commitments. While in November 2024 Enova announced the support of hydrogen and ammonia production plants along the Norwegian coast, they in parallel ensure a sufficient number of vessels in parallel with the production and bunkering of hydrogen and ammonia.

The table below provides an overview of the supported projects/vessels and allocated funding.

Enova reports having received a total of 31 applications in this round for the “Hydrogen in vessels” and “Ammonia in vessels” programs. While out of the 31 applications 9 vessels receive support this time, Enova encourages interested parties to reapply before the next deadline, which is expected to be at the end of the first quarter of 2025. Furthermore, due to Enova’s strong focus on hydrogen and ammonia, additional applications in future rounds are expected. While the support for hydrogen and ammonia vessels shall continue, the support program for land based production of hydrogen and ammonia for the maritime sector is currently not planned to continue. However, Enova is currently designing a new support scheme targeting ammonia infrastructure along the Norwegian coast.

While supporting necessary supply (land-based hydrogen and ammonia production) and demand (hydrogen and ammonia vessels), infrastructure is the missing piece of the value chain puzzle. A draft of the program will be presented in the first quarter of 2025, providing the market with an opportunity to give feedback and shape its deployment.

These developments underscore the Norwegian maritime industry’s commitment to exploring alternative fuels like ammonia and hydrogen.