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Greig Star to build its first tanker to carry green ammonia

Dry bulk shipowner Grieg Star Group will build its first tanker - the world's first green ammonia-fuelled tanker to ship green ammonia - in partnership with Wartsila, backed by NOK46.3m ($5.4m) of Norwegian government’s funding scheme Pilot-E.

Lee Hong Liang, Asia Correspondent

December 21, 2020

2 Min Read
Grieg Star
Vidar Lundberg, chief business development officer in Grieg StarPhoto: Grieg Star Group

Wartsila Norway and Grieg Star’s innovation hub Grieg Edge are jointly running the project to launch the greenhouse gas (GHG) emissions free tanker, MS Green Ammonia, in 2024.

“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,” said Iselin Nybo, Minister of Trade and Industry, in a press release by Pilot-E.

The partners plan to have MS Green Ammonia distribute green ammonia from the planned factory in Berlevag to various locations and end-users along the Norwegian coast. The project has also already established letter of intents with several heavyweight industrial partners.

“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,” said Vidar Lundberg, chief business development officer in Grieg Star.

One prominent group of potential customers are owners of ships using LNG as a marine fuel today. Depending on the engine’s build, they may mix ammonia in their LNG fuel – or easily retrofit to use only ammonia.

Related:Hydrogen, ammonia and biofuels to meet 80% of shipping fuel needs by 2070: IEA

“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,” Lundberg said.

“We are in the midst of a transition to low carbon shipping, and the long traditions we have in Norway for cross-industry corporation is vital for a successful implementation of a new green value chain. Through fruitful collaboration Wartsila has earlier been part of the implementation of LNG and hybrid systems, and fuel cells, and are excited to contribute to this important demonstration project of green ammonia together with a forward-leaning shipowner as Grieg Edge and the other collaborating partners”, said Cato Espero, head of sales Wartsila Norway.

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About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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