Höegh Autoliners secures significant Enova funding for two ammonia-powered vessels

Höegh Autoliners hsip
DATE 05.03.2024

Shipping company Höegh Autoliners ASA is making significant progress in its ambition to make the Aurora Class the world's first PCTC vessel to run on ammonia. Today, they have been granted almost USD 14 million (NOK 146 million) in Enova funding to use the alternative and sustainable fuel for two of their vessels.

Director of Technology and Market Development in Enova, Astrid Lilliestråle is pleased with Höegh Autioliners’ plans to introduce ammonia-powered vessels to its fleet:

We note that the shipping company aims to be at the forefront of adopting ammonia in ships and has ambitions to take measures to adapt to necessary changes and future requirements towards the low-emission society

Gradual increase in ammonia proportion

Höegh Autoliners has a total of 12 Aurora Class vessels on order. The vessels transport rolling cargo such as cars, agricultural machinery, and mining equipment, as well as general solo cargo needing to be shipped.

All 12 vessels are designed with engines that run on liquefied natural gas (LNG) and low-sulfur oil, and with an ammonia-ready certification from DNV. To use ammonia as fuel, the installation of an ammonia engine and an additional tank to maintain sufficient range are required.

Therefore, Höegh Autoliners has applied for Enova funding for two of their 12 confirmed vessels to reduce the additional cost of this solution compared to a vessel that would be "ammonia ready".

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.

These vessels will significantly contribute to the company's goal of achieving net zero emissions by 2040. Höegh Autoliners, as one of the first and few shipping companies globally, has secured access to the first ammonia 2-stroke engines delivered by MAN.

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)

Demonstrates leadership in the deep-sea segment

Shipping accounts for around 3 percent of global emissions, and 90% of shipping emissions come from deep-sea transportation.

Höegh Autoliners already operates some of the world's most sustainable PCTC vessels, equipped with fuel-saving technologies. With the order of 12 zero-emission-ready Aurora Class vessels and the potential for conversion to run on ammonia, the company positions itself at the forefront of zero-emission international shipping.

With a capacity of up to 9,100 cars, the Aurora Class vessels will be the world's largest and most environmentally friendly car carriers ever built.

"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.

For more information, please contact:

  • Leder maritim transport Rune Holmen, Enova SF, mobil +47-926 40 927, e-post rune.holmen@enova.no
  • Fungerende pressesjef Arne Morten L. Johnsen, mobil +47-916 85 896, e-post arne.johnsen@enova.no
  • Pressekontakt Mariann Strand, Enova SF, mobil +47-906 41 873, e-post mariann.strand@enova.no
  • Kommunikasjonssjef Höegh Autoliners, Camilla Knappskog, mobil +47-926 66 156, e-post camilla.knappskog@hoegh.com

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