Höegh Autoliners behind groundbreaking ship upcycling project in Norway

In a significant move for maritime sustainability, Höegh Autoliners and Nordic Circles announced a transformative agreement at the Blue Talks stage during Nor-Shipping. This NOK1.3 billion ($128 million) initiative aims to upcycle decommissioned vessels into certified, low-emission building materials, all within Norway. The project promises to eliminate the need for melting or exporting, thereby minimizing emissions and setting a new standard for the construction industry.

Revolutionizing Ship Recycling and Construction

The collaboration between Höegh Autoliners and Nordic Circles represents a pivotal advancement in the circular economy. The initiative plans to upcycle up to eight vessels, with the first expected to be decommissioned in 2026 at AF Offshore Decom in Vats, a facility recognized for its environmentally friendly dismantling processes. According to the companies, the emissions savings from these eight vessels could reach an impressive 100,000 tons of CO₂, significantly benefiting the carbon-intensive construction sector.

“This is a cradle-to-grave solution,” stated Sebjørn Dahl, chief operating officer of Höegh Autoliners. He emphasized the company’s commitment to becoming the greenest player in deep-sea shipping, aiming for a net-zero target by 2040. The company is already investing in green ammonia and developing eco-friendly car carriers. This agreement, he noted, lays the groundwork for a new green industrial chapter in Norway.

John Jacobsen, CEO of Nordic Circles and its subsidiary Oppsirk, praised the project as “circular economy at its best.” He highlighted the initiative’s potential to transform what was once considered hazardous waste into a valuable domestic resource. “The eight ships will save around 100,000 tons of CO₂ and pave the way for mobilizing yards and shipping companies across Europe,” he added.

The World’s Largest and most Environmentally Friendly Car Carrier in the industry named today.

Aiming for a Sustainable Future

This initiative is backed by Norway’s Green Platform public funding mechanism and involves a consortium of prominent players, including Statsbygg, the municipalities of Oslo and Bergen, Skanska, Green Yard, Equinor, DNB, and SINTEF. AF Offshore Decom serves as the main contractor, ensuring that the entire value chain relies on Norwegian technology, labor, and industry.

Currently, Turkey dominates the EU’s large-scale ship recycling operations. This Norwegian-led initiative seeks to challenge that status quo by fostering a domestic and regional circular steel economy. Rather than melting steel—a process that generates significant CO₂ emissions—this new model focuses on reuse under commercial conditions, achieving emissions reductions of up to 97%.

The long-term vision is to establish Norway as a hub for green ship upcycling, thereby securing Europe’s position in the global maritime transition towards sustainability.