Norwegian duo unveils national project targeting end-of-life vessels

Norwegian shipping player Höegh Autoliners and Nordic Circles, a compatriot company specializing in the production of sustainable solutions for the reuse and upcycling of materials from the maritime and energy sectors, have launched a national project aimed at ‘redefining’ the handling of decommissioned vessels.

As disclosed, relying on domestic technology, labor and industry, the two partners are to establish a circular value chain in which decommissioned ships are repurposed as certified eco-friendly building materials in Norway, without melting, without export, and with up to 97% lower emissions.

The endeavor, worth NOK 1.3 billion (circa $128 million), is reportedly supported by a wide range of domestic public funding instruments via the Green Platform, a scheme that provides funding for enterprises and research institutes engaged in ‘green’ growth.

Beyond Nordic Circles, which leads the consortium, several other players from across the value chain are involved: the Norwegian Directorate of Public Construction and Property (Statsbygg), the municipalities of Oslo and Bergen, Sweden-based construction and development company Skanska, the Green Yard shipyard, energy major Equinor, DNB Bank and research firm SINTEF. The main contractor will be AF Offshore Decom, the partners have shared.

As informed, the scope of the effort covers up to eight vessels from Höegh Autoliners, with the first upcycling planned to be completed in 2026. The units in question alone have the potential to slash carbon dioxide (CO2) emissions in the construction industry by 100,000 tons.

Norway operates the world’s fifth-largest merchant fleet by value. At the same time, a double in commissioning assignments is expected, driven largely by new climate regulations and aging ships.

Along the country’s coast, the maritime sector has seen the development of seven EU-approved yards that are capable of decommissioning and upcycling, AF Offshore Decom at Vats being one of them. In addition to this, as understood, all yards based in Norway possess expanded capacity, with several having been equipped to handle large vessels.

Given that, globally, construction is estimated to account for 40% of greenhouse gas (GHG) emissions, with steel being one of the largest contributors, Höegh Autoliners and Nordic Circles have highlighted that the national project could become a ‘vital’ part of Norway’s vision of becoming a ‘genuinely green’ society.

Moreover, as elaborated, since Norwegian shipyards and the steel industry are being developed into a competitive alternative to Türkiye, which currently holds the EU’s only large-scale ship recycling capacity, the result of the joint initiative is mass-produced steel with minimal emissions, under commercial terms.

“This is circular economy at its best – managing to build a sustainable industry from what we used to export as hazardous waste to Asia,” John Jacobsen, CEO of Nordic Circles and Oppsirk, commented.

Sebjørn Dahl, COO of Höegh Autoliners, further remarked that the agreement “ensures sustainability from cradle to grave”, formulating the blueprint for a ‘new, green, industrial’ movement in the country.

As one of the leading maritime nations, Norway has strived to pioneer environmental progress. Under the newly set targets, the country aims to cut GHG emissions by at least 70-75% by 2035, compared to 1990 levels, as opposed to the previous goal, which entailed a 55% reduction by 2030.

The nation’s maritime decarbonization strategy involves adopting zero-emission technologies, using clean fuels, and upgrading the existing fleet for energy efficiency. The vision also places particular emphasis on international cooperation and working toward a worldwide ban on non-climate-neutral fuels by 2050.