Norway’s Amon Maritime has set up a new company to order ammonia-fuelled bulk carriers backed by a state grant.

Named Amon Bulk, the new venture will develop two vessel types — a capesize and a kamsarmax — using a NOK253m ($25m) award from energy transition agency Enova.

“The capesize and kamsarmax segments are ideal for ammonia adoption. These vessels have high fuel consumption and operate on established routes for industrial clients with strong climate ambitions. This combination enables both substantial environmental impact and solid commercial viability,” said André Risholm, CEO of Amon Maritime.

The newbuilds – named Amon Bulk 1 and Amon Bulk 2 – are expected to hit the water by 2029 and will be among the world’s first large bulk carriers powered by ammonia, the company said.

“With Amon Bulk, we are taking a significant step toward decarbonizing bulk trades in deepsea shipping,” Risholm added.

Amon Maritime has a portfolio of ammonia-powered ship newbuilding and bunkering projects. It has led projects across the gas carrier, bunkering, and offshore support sectors and was previously involved in ammonia bulk shipping through its Viridis Bulk Carriers joint venture.

This new initiative is part of Enova’s latest NOK763m push into ammonia and hydrogen-powered shipping, which also includes support for hydrogen vessel projects by LH2 Shipping and Møre Sjø. The latter recently ordered a pair of hydrogen-powered 4,000 dwt newbuilds at Turkey’s Gelibolu Shipyard, slated for delivery in 2027. These newbuilds are also backed by Enova.

“The technology is still new. Now we will support the industry in building experience”, said Nils Kristian Nakstad, managing director of Enova, adding: “If we are going to succeed in cutting emissions from ocean transportation, we need to go for solutions that can grow in scale towards 2050.”