Low-Emission Short-Sea Cargo Ship Project Wins Enova Funding

Enova, the Norwegian government fund, has announced a grant of NOK 130 million (US $12.25 million) to Skarv Shipping Solutions AS for the acquisition of three cutting-edge, low-emission cargo ships.

The vessels, which will operate along the Norwegian coast, have the potential to reduce emissions by up to 90% compared to traditional ships. The funding is expected to help Skarv Shipping Solutions to implement innovative technologies such as batteries, ammonia engines, rotor sails, and energy-efficient hull designs.

Enova, known for supporting groundbreaking projects, recognizes the importance of Skarv Shipping Solutions’ innovative approach to short-sea shipping.

“Enova supports those who go in front. Skarv Shipping Solutions has developed an exciting and innovative project that can mean a lot for the development of our short-sea shipping,” said Nils Kristian Nakstad, CEO of Enova.

Each of the three vessels will have a cargo capacity of 4,000 tonnes and will be deployed for short-haul shipping operations along the Norwegian coast, spanning from northern Norway to the Oslo Fjord. The propulsion system will be based on a four-stroke engine fueled by ammonia, making it one of the world’s first four-stroke ammonia engines. The engine, likely supplied by Wärtsilä, promises to be a pioneering technology in the shipping industry.

Skarv Shipping Solutions is considering multiple technologies to enhance energy efficiency. Alongside the ammonia engines, the vessels will feature rotor sails, a hybrid electric system, and a new hull design to significantly reduce energy consumption. The ships will also be equipped with electrical cargo handling equipment to optimize operations.

Jan Øivind Svardal, CEO of Skarv Shipping Solutions, emphasized the importance of reducing CO2 emissions in Norway’s coastal maritime sector.

“Enova’s support is invaluable in developing our plan to reduce CO2 emissions in Norway’s coastal maritime sector,” said Svardal. “We have poured considerable resources into crafting a shipping and logistics concept that we are absolutely positive can be taken to market to ensure the utmost safety, efficiency, and dependability. Now, with Enova’s decision, we are eager to move forward and accomplish our next goals: firm commercial agreements with our clients and initiating the contracting and construction of ships.”

The project aligns with the global shipping industry’s goal of transitioning to zero-emission fuels. By spearheading the use of zero-emission solutions, including the adoption of green ammonia, the initiative led by Skarv Shipping Solutions is expected to set a new standard for short-haul shipping.

“The next big step in transforming shipping is the transition to zero-emission fuel. This groundbreaking project will lead the way and show the way for short-haul shipping to adopt a wide range of zero-emission solutions, including the use of green ammonia. I look forward to following the development,” said Espen Barth Eide (Ap), Norway’s Climate and Environment Minister.

Jan Petter Slethaug, Chair of the Board of Skarv Shipping Solutions, emphasized the company’s commitment to sustainable maritime shipping.

“Skarv Shipping Solutions’ ambition is to realize sustainable maritime shipping solutions by the development of zero-emission vessels,” said Slethaug. “The substantial funding from Enova will be of great importance for reaching our ambitions for the green shift in shipping, particularly in the short sea trade. We are very thankful, and we will speed up the process in our zero-emission roadmap.”

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