Support program for batteries on PSV

The NOx Fund has launched a support program for retrofit of battery systems on PSVs on long term contracts in Norway. The application deadline is 30 June 2018, provided that there are still funds available under the support program.

PSV Far Sun

The PSV Far Sun in Farstad Supply AS has been provided a support statement from the NOx Fund for installation of battery systems. Photo: Farstad/Harald M. Valderhaug.

Publisert 09.09.17

NOx

A PSV vessel can receive a fixed payment of 5 mill. NOK in support for retrofit of battery systems. There is also an additional support of 4 NOK/kWh charged shore power, measured over one year. The latter is to stimulate plug-in solutions that gives energy conversion in addition to energy savings (and thus increased NOx reduction). The support is limited to a maximum of 80 % of the investment costs.

Conditions

To fall under the support program the following conditions must be met:

  • Retrofit on offshore PSV vessels that have LNG engines or SCR systems
  • The batteries must have a capacity that actually enables a more optimal emission operation of the vessel's diesel machinery, included peak shaving and spinning reserve
  • The vessels must be able to document a contract period on the Norwegian continental shelf of minimum three years (current contract or tender phase).
  • For vessels that are in a tender phase for a contract on the Norwegian continental shelf, the support applies only if the applicant wins the contract.
  • The NOx Fund must grant support to the measure before the shipping company settles the contract for installation of the battery system
  • Companies that have already been granted support for battery systems within the terms, retain these, but adjusted for a guaranteed minimum payment of 5 million NOK.

Application deadline

The support are granted after application, which is processed according to the NOx Fund's normal procedures. The NOx Fund has allocated NOK 100 million to the support program. The deadline for submitting an application is 30 June 2018, provided that there are still funds available under the support program. Applications received after this will be processed in accordance with the usual support conditions. Vessels that do not meet the conditions will be eligible for support under the NOx Fund's general support scheme.

Implementation deadline

Measures that have received support under the support program must be completed by 31.12.2018. There is no support granted for measures that are implemented after this date. 

Predictability

- We find that these measures are wanted by both offshore ship owners and oil companies, but that there is a need for predictable support to create a sufficiently good economy for the measures to be implemented, says Tommy Johnsen, General Manager of the NOx Fund. - This support program should make it easy for companies to predict what support they can expect and we believe that the support level triggers implementation, provided that these measures also significantly reduce operating costs, he continues.

- With a new NOx agreement 2018-2025 in place, we need to think long-term regarding the effects of the measures, even more so than before. Further revisions of the NOx Fund's support scheme will be presented later this year. Now, as a start, we are focusing on a narrow vessel segment with secure long-term operations, Johnsen adds.

Please contact the NOx Fund's administration for further information.