Enova bankrolls Höegh Autoliners’ ammonia-powered PCTCs

Oslo car carrier owner Höegh Autoliners ASA has secured almost USD 14 million (NOK 146 million) in funding from Enova, Norwegian state energy transition fund, for its Aurora Class of pure car and truck carriers (PCTCs) set to run on ammonia.

Höegh Autoliners has ordered a dozen of 9,100 CEU Aurora Class vessels designed for transporting rolling cargo, including cars, machinery, and mining equipment as well as general solo cargo.

The ships are designed to run on liquefied natural gas (LNG) and low-sulfur oil and will have ammonia-ready certification from DNV. The ammonia engines are slated to be installed at a later stage, once they become commercially available, together with ammonia tanks.

Höegh Autoliners added that it has managed to secure access to the first ammonia 2-stroke engines from MAN Energy Systems. MAN is scheduled to deliver its first ever ammonia-fueled engine this year to a vessel in Japan.

The Norwegian PCTC major 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.

To facilitate ammonia usage, two of these vessels are seeking Enova funding to offset the additional costs associated with installing ammonia engines and extra storage tanks for extended range.

“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 said.

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).

“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.”