In a bold move toward a circular and sustainable maritime economy, Höegh Autoliners and Nordic Circles have signed a visionary agreement to repurpose decommissioned ships into certified building materials within Norway, slashing emissions and pioneering a new green industrial sector.
The agreement, worth NOK 1.3 billion, was announced on the Blue Talks stage at Nor-Shipping, with global maritime leaders in attendance, including John Kerry and Andrew Forrest of Fortescue.
The Project: Ship Recycling Reinvented
At the heart of the initiative is a new national value chain for upcycling ships using Norwegian technology, labor, and shipyards. Instead of exporting and melting steel — a process with high carbon emissions — the project will reuse steel domestically, reducing emissions by up to 97%.
-
Up to 8 ships from Höegh Autoliners will be processed
-
First decommissioning to occur in 2026 at AF Offshore Decom in Vats
-
The ships will yield certified, low-emission steel for the construction industry
-
Expected CO₂ savings: 100,000 tons across 8 ships
Strategic and Environmental Significance
The project aligns with Höegh Autoliners’ net-zero goal by 2040 and their push toward green ammonia-fueled shipping by 2027. It also establishes Norway as a green industrial leader in Europe.
Building Europe’s First Large-Scale Upcycling Ecosystem
Norway is positioning itself as a competitive alternative to Turkey, which currently dominates EU ship recycling. This initiative will:
-
Utilize 7 EU-approved Norwegian shipyards
-
Create a sustainable alternative for the EU’s ship decommissioning needs
-
Support job creation and green innovation in coastal communities
Strong Public-Private Backing
The agreement is backed by the Green Platform initiative and includes a powerful consortium of stakeholders:
-
AF Offshore Decom (main contractor)
-
Statsbygg, Oslo & Bergen municipalities, Skanska, Green Yard, Equinor, DNB, SINTEF
Unlocking Global Potential
With Norway holding the 5th largest merchant fleet by value, and the EU collectively covering 45% of the global merchant fleet, the potential impact is vast.
The industry is poised for rapid growth due to:
-
New climate regulations
-
An aging global fleet
-
Unused shipyard capacity in Norway for large vessels
This agreement marks a turning point for sustainable shipping and steel reuse in Europe. By anchoring green innovation in Norway and reducing global CO₂ output, the project is a bold model for circular economy leadership, not just in the maritime sector, but across global industry.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Höegh Autoliners ASA
