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Maritime Propulsion

May 11, 2023

Höegh Autoliners Announces Green Ammonia Supply Deal

(Image: Höegh Autoliners)

Höegh Autoliners announced it is partnering with Norwegian green energy provider North Ammonia for the supply, distribution, delivery and consumption of green ammonia, a carbon free fuel produced using renewable energy.

Under the deal, North Ammonia—established by Grieg Maritime Group and Arendals Fossekompani in 2021—will supply Höegh Autoliners with green ammonia from its planned production facility in Arendal in southern Norway.

Höegh Autoliners currently has on order eight ammonia-ready dual-fuel Aurora class pure car and truck carriers – expecting the delivery of two every six months starting from the second half of 2024. The shipowner has committed to powering at least 5% of its deep-sea operation with green ammonia by 2030 and aims to consume at least 100,000 metric tons of green ammonia within its fleet by that same year.

“This collaboration will not only reduce our environmental impact and carbon footprint. It will also set a new standard for the industry as a whole and assist our partners and customers in decarbonizing their supply chain,” said Höegh Autoliners CEO, Andreas Enger. “We are receiving positive feedback and strong signals from major car manufacturers in Europe about enabling lower-emission transport of cars from the manufacturing site to the customers.”

Sebjørn Dahl, Höegh Autoliners COO, said, “The fact that green ammonia is becoming a totally viable maritime fuel is a game-changer for our industry. We believe it will set the standard for others to follow. I thought this development would be achievable in 10 years’ time. But technology is moving faster than expected and the future is here. This partnership will ensure that we and our Norwegian industry suppliers will be well-positioned for seizing that very future. With this partnership, we are adding yet another steppingstone in designing the infrastructure of the future – with a green and sustainable focus.”

Having selected the Eydehavn site at the Port of Arendal as the location for production, storage and export infrastructure, North Ammonia is aiming to commence operations is in 2027. The bunkering location for the green ammonia in the partnership with Höegh Autoliners is likely to take place in the Amsterdam-Rotterdam Antwerp area. The distribution of the green ammonia to bunkering locations in Europe may be provided by Grieg’s future ammonia bunkering vessels.

Vidar Lundberg, North Ammonia CEO, said, “In the maritime energy transition, we are dependent on first movers such as Höegh and this partnership demonstrates the growing demand for green ammonia in deep-sea shipping. As an infrastructure developer, we hope that this collaboration will inspire other companies in the industry to develop and order environmentally friendly vessels.”