WÄRTSILÄ and Höegh LNG have received funding to develop a system that converts ammonia back into hydrogen. The system would then be installed on a Höegh LNG vessel.

The Norwegian government has committed €9.5 million (around $15.5 million) to the companies and project partners to develop ammonia as a hydrogen carrier for the energy market.

The Institute for Energy Technology, University of South-East Norway, Sustainable Energy and chemicals company BASF are also participating in the project.

Wärtsilä said the system would create 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.

The project, part of Norway’s Green Platform program, aims to enhance the availability of large-scale storage and transportation capabilities of clean energy.

Wärtsilä said hydrogen is emerging as a viable future fuel for addressing the move away from fossil fuels, but it is difficult to store and transport due to its low volumetric energy density and with potential large vaporisation losses.

It believes ammonia is “significantly better suited than hydrogen” for this purpose, as it can be stored in liquid form at moderate pressures and temperatures.

The objective of the project is to enable ammonia to be converted back to hydrogen at the receiving destination.

“This important project is a natural extension of the investments and efforts made by Wärtsilä to accelerate the use of decarbonised energy,” Wärtsilä Gas Solutions vice president Walter Reggente said.

“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 appreciate also the co-operation of Höegh LNG and our other partners in making this project possible.”

And Erik Nyheim, CEO and president of Höegh LNG, said thee provider of floating LNG terminals is well positioned to support the transition to carbon-free energy,

“New and innovative solutions will need to be developed and we look forward to working together to ensure we remain at the forefront of the energy transition,” he said.