Wärtsilä and Grieg to Build World's First Green Ammonia Tanker
Finnish maritime technology firm Wärtsilä and Grieg Edge, the innovation hub of Norwegian shipping group Grieg Star, are working on a joint project to launch an ammonia-fuelled tanker producing no greenhouse gas emissions by 2024.
With Norwegian government support worth 46.3 million NOK (4.4 million EUR), the partnership aims to build what will be the world's first green ammonia fuelled tanker.
"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," Wärtsilä said.
Pilot-E, the Norwegian funding scheme will support the project with a NOK 46,3 million grant.
Nicolai Grieg, Head of Grieg Edge: "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."
"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, Wärtsilä said Friday.
The market is there
"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,"
Shipowners 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, Wärtsilä said.
“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 customers, 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.