Wärtsilä, Höegh LNG Get Funding For Clean Energy Initiative

Technology group Wärtsilä, along with Norway-based Höegh LNG and other partners, Institute for Energy Technology (IFE), University of South-East Norway, Sustainable Energy and BASF SE has received funding of approximately EUR 5.9 million from the Norwegian Government. The funding is for the development of ammonia as a hydrogen carrier for the energy market. It is a part of Norway’s Green Platform program of initiatives and amounts to approximately 50% of the total budget for the joint project.

The project is designed to enhance the availability of clean energy's large-scale storage and transportation capabilities. Hydrogen is emerging as a viable future fuel for addressing the move away from fossil fuels. However, it is difficult to store and transport due to its low volumetric energy density and potential large vaporization losses. Ammonia is significantly better suited than hydrogen for this purpose since it can be stored in liquid form at moderate pressures and temperatures. The project's objective is to enable ammonia to be converted back to hydrogen at the receiving destination.

As a carbon-neutral renewable energy carrier, ‘green’ ammonia is produced from hydrogen via the electrolysis of water, and nitrogen from the air. The significant emission reduction impact will reflect this green approach when the energy is consumed. Green ammonia acts as a liquid battery with a high energy density compared to alternative solutions for storing and transporting renewable power. The infrastructure for the large-scale transport of ammonia at sea already exists via a fleet of gas tankers with ammonia on the cargo list.

“This important project is a natural extension of the investments and efforts made by Wärtsilä to accelerate the use of decarbonized energy. Hydrogen will play a considerable role in future renewable fuel consumption, and there is a clear need for the development of Ammonia as a storage and transportation carrier for hydrogen. We are grateful to the Norwegian government for its support and funding, and we also appreciate the cooperation of Höegh LNG and our other partners in making this project possible,” said Walter Reggente, Vice President of Wärtsilä Gas Solutions.

“As a world-leading provider of fast-track floating LNG terminals, we are well-positioned to support the transition to clean, carbon-free energy. New and innovative solutions will need to be developed. We look forward to working together to ensure we remain at the forefront of the energy transition,” said Erik Nyheim, CEO and President of Höegh LNG.

The project aims to develop a system to convert ammonia back to hydrogen, which will then be installed onboard a Höegh LNG vessel. This will provide a floating receiving terminal capable of being relocated as needed, requiring minimal use of coastal land and a solution resulting in lower overall cost, improved safety and competitive hydrogen prices.

Wärtsilä Gas Solutions is a market leader with innovative systems and lifecycle solutions for the gas value chain. Our main focus areas are handling of gas in seaborne transport (storage, fuel, transfer and BOG management), gas to power, liquefaction, and biogas solutions. We help our customers on the journey towards a sustainable future through focus on lifecycle, innovation and digitalization.

Höegh LNG has a market-leading position and 50 years of experience as a pioneer, owner, and operator of floating infrastructure for LNG transportation and import. Their solutions and services accelerate energy independence in countries across the globe and the company has, during the last year delivered 3 fast-track floating LNG import terminals in Germany providing energy security and accelerating energy transition in the country. Based on their competence within floating terminals, liquid gas handling and marine gas transportation, they intend to expand their services into the growing clean energy markets together with partners and innovative initiatives.