Norway's Grieg Star has revealed its ambition it build the world's first tanker to ship and run on green ammonia.

The shipowner said it has support worth NOK 46.3m ($5.4m) for the project from Norwegian funding scheme Pilot-E.

Grieg is working with Finnish technology company Wartsila to launch the ship in 2024.

The tanker is the first big project undertaken by the group's tech spin-off, Grieg Edge.

The scheme comes as a result of collaboration with the Zero Emission Energy Distribution at Sea partnership.

"We regard the funding from Pilot-E as a valuable stamp of approval for our plans," Grieg Edge boss Nicolai Grieg said.

Ammonia is the future

"Both Wartsila and we feel confident this project represents the future for the maritime sector. To have the support from the Norwegian Research Council and Innovation Norway is a significant step towards completion."

Norway's minister of trade and industry, Iselin Nybo, said the deal showed the Norwegian maritime industry is at the forefront of developing emissions-free solutions with great export potential.

"This is another great example of how we create new green industry and growth in Norway," she added.

Ship to be called Green Ammonia

The partners plan to have the vessel, called Green Ammonia, distribute the fuel from a planned factory in Berlevag to various locations and end users along the coast.

Specific design plans, including size and volume, are elements that depend on the market and client requirements.

However, the project has already established letters of intent with "several heavyweight industrial partners", Grieg said.

Strong interest

"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," Grieg's chief business development officer Vidar Lundberg added.

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

Hoegh LNG has previously revealed its ambitions to enter the ammonia trade.

"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 added.

Tankers

Grieg Star aiming to build first tanker to use and carry green ammonia