Enova invests US$14m in two Höegh Autoliners ammonia-powered vessels

Shipping company Höegh Autoliners has been awarded approximately US$14m from Enova to enable the use of ammonia to fuel two of its pure car and truck carriers (PCTCs).

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

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 applied for Enova funding for two of the vessels to reduce the cost of this solution.

This initiative is intended to support the company’s aim 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 the availability and price of ammonia reach satisfactory levels, with a gradual ramp-up expected from 2027.

Astrid Lilliestråle, director of technology and market development at Enova, commented, “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 toward the low-emission society.”

Andreas Enger, CEO of Höegh Autoliners, said, “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.”

Enger continued, “The support from Enova, together with our innovative multi-fuel vessel design, significantly helps to de-risk the choice of bringing the first zero-carbon vessels to our industry. The race toward decarbonizing the industry will take decades, not years. Nevertheless, no progress will be made without pioneering companies taking decisive steps to shape the future.”

Read more of the latest alternative fuel updates from the electric and hybrid marine technology industry, here.