Norwegian Subsidies for Electric Ships: A Big Opportunity for the Shipbuilding Industry

By Marek Grzybowski

Norwegian fund to allocate NOK 62 million for electric freighters. This is an opportunity for Polish shipyards to participate in the project. GC Rieber Shipping, in cooperation with GC Rieber Minerals and Franzefoss Minerals AS, signed a letter of intent to build an electric cargo ship. This ship will be equipped with the latest technology to ensure efficient and environmentally friendly operations – informs the shipowner. This is one element of a larger project enabling the construction of electric cargo ships and power stations from quays. It is also an opportunity for Polish shipyards to participate in an innovative project on a global scale.

In total, Enova SF will allocate EUR 31.6 million for seven electric ships and four charging stations. Enova is a Norwegian government entity. At the request of small ship operators, the Enova SF board decided to allocate NOK 362 million for tonnage investments and port charging stations.

Among the projects set to benefit from government funding is what could be the “world’s largest” battery-powered container ship, which the Norwegians claim will be a “breakthrough in zero-emission shipping.” The move is expected to reduce CO₂-equivalent emissions by 20,836 tons per year, Enova concluded.

NOK 200 million for electric container ships

One of the companies that will receive NOK 200 million in funding for a pioneering project to build two battery-powered container ships is Eitzen Avanti. The ships are to operate in cabotage shipping between Norway, Sweden and Germany. The ships are expected to have a battery capacity of over 100 MWh and will be able to carry 850 TEU containers at a time.

– Each of these projects shows in its own way that it is possible to apply electrification in [merchant – MG] shipping. The technology is already mature enough and the projects are available,” Andreas Forsnes Jahn, Senior Advisor for Maritime Transport at Enova, said in a media release. He noted that “If the electrification of car ferries was the first wave, we hope that this will be the beginning of the second wave of electrification in short-sea shipping.”

As part of this program, the Port of Oslo Authority will also receive NOK 20.6 million in support for a ship loading facility at the container terminal at Sjursøya. – The vision of the Port of Oslo is to be the most efficient and environmentally friendly city port in the world. Enova’s support is a very important contribution to achieving Oslo’s and the port’s ambitious climate goals,” emphasized Ingvar M. Mathisen, Port Director at the Port of Oslo.

– The Eitzen Group sees great potential in electrifying regional shipping. Battery prices have fallen by more than 80% over the past decade and will continue to fall as demand grows worldwide, said Fridtjof C. Eitzen, CEO of the Eitzen Group, explaining that “Like a train that cannot be stopped, the use of electric ships will eventually become the most cost-effective way to transport goods at sea.”

Fridtjof C. Eitzen emphasized when announcing the grant: “We are pleased and very grateful that ENOVA and the Port of Oslo share this vision in a forward-looking manner. Their support and cooperation are crucial to the implementation of the project and are an important first step towards scaling up electricity at sea.”

Electric bulk carrier for the fjords

Polar Energy Shipco has also received support from Enova for an all-electric bulk carrier that will transport minerals along the Norwegian coast. In addition to electric propulsion, the vessel will use rotors. The electric motors will be powered by batteries with a capacity of over 20 MWh and the ship will be able to sail exclusively on electric engines. In addition, GC Rieber Minerals will receive support for a charging station in Laksevågneset.

Norwegian operator Brim Explorer has received support for two electric vessels that will sail between the Norwegian ports of Ålesund and Geiranger. The vessels have a number of innovative solutions contributing to high energy efficiency. The electric propulsion will use battery power with a capacity of around 3 MWh. Lovundlaks receives support for two electric workboats, as well as two dedicated charging points at its shore bases.

GC Rieber Shipping subsidiary Polar Energy Shipco received a grant from Enova SF in early June to support the construction of an electric vessel. It is stressed that the Initiative is part of Norway’s broader drive towards zero-emission shipping and represents a significant milestone in sustainable logistics.

The vessel will be developed in close cooperation with freight forwarders GC Rieber Minerals and Franzefoss Minerals, who have committed to reducing the carbon footprint of their supply chains. The project aims to demonstrate the commercial and environmental viability of battery-electric propulsion in coastal shipping operations. GC Rieber Shipping has signed a letter of intent with K. Sætre & Sønner, which will be entrusted with the operation of the vessel.

Bulk and general cargo ships powered by electricity

K. Sætre & Sønner specializes in the transportation of bulk and general cargo in the North Sea. “This support from Enova allows us to accelerate the transition to zero-emission transport,” said Einar Ytredal, CEO of GC Rieber Shipping after receiving the grant to build the electric freighters, emphasizing: “Together with GC Rieber Minerals and Franzefoss Minerals, we are proud to be leaders in developing cleaner, more efficient solutions for maritime transport.”

The new vessel will be designed for cabotage operations along the Norwegian coast. It will be equipped with a set of advanced battery systems for short-haul operations. They will be powered by shore power. According to the operator, this will significantly reduce greenhouse gas emissions and noise compared to conventional diesel-powered ships.

GC Rieber Shipping’s management emphasizes that it “has a clear ambition to operate zero-emission vessels in multiple segments.” The project is seen as a way to gain experience in both the development and operation of battery-electric systems in cabotage transport. The experience gained will form the basis for a broader implementation of clean technologies in the operator’s fleet.

“This project is a key enabler for us to deliver low-emission salt and mineral transport. We are proud to be at the forefront of implementing sustainable solutions that our customers and partners are constantly asking for,” says Per Gunnar Syrdalen, Chief Commercial Officer at GC Rieber Minerals.

Syrdalen emphasized: “We believe that a future-oriented partnership between freight owners is key to delivering net-zero maritime solutions. The fact that our sister company is involved and leading [innovation implementation – MG] is an additional bonus.”

– At Franzefoss Minerals, we are committed to reducing the impact of our operations on the environment, said Ingrid Hynne Hoem, Logistics Manager at Franzefoss Minerals. She noted that “Participating in this project allows us to take a concrete step towards more sustainable freight transport and is in line with our long-term climate goals.”

The above projects are also an opportunity for Polish shipyards to join in the decarbonization of freight transport in Norway. So far, cooperation with Finland and the Scandinavian countries in the construction of electric ferries has been fruitful. This experience can pay off in the construction of electric container ships and bulk carriers.

During the implementation of the zero-emission ship production project with the Norwegians by the Baltic Maritime and Space Cluster, CRIST presented a whole range of production possibilities. The attention of the Norwegian partners was particularly drawn to innovative ships and ferries. There is therefore potential and a platform for taking the next step in the cooperation between Poland and Norway in the production of low-emission ships.