Nor-Shipping: Höegh Autoliners' ship 'upcycling' to cut ship recycling emissions by 97%

Höegh Autoliners has agreed to upcycle some of its vessels at the end of their lives in a Norwegian government-backed deal that participants hope will make both ship recycling and construction practices greener.

The project, valued at Nkr1.3Bn (US$128M), is being led by Norwegian steel upcycling start-up Nordic Circles, which describes the difference between upcycling and recycling steel as "making new products without melting it".

"Instead, we cut, scrub, bend, repaint and recertify the steel," Nordic Circles said.

The agreement covers up to eight of Höegh Autoliners vessels, with the first upcycling scheduled for 2026, and the first vessel is scheduled for decommissioning at AF Offshore Decom in Vats, Norway.

According to the project, upcycling the steel from eight of Höegh Autoliners’ ships could reduce carbon emissions in the construction industry by 100,000 tonnes of CO2.

“We aim to be the greenest in deepsea shipping and have set a net-zero target by 2040. That’s why we’re building the world’s largest and most environmentally friendly car carriers and investing in making green ammonia a viable fuel from 2027,” Höegh Autoliners chief operating officer Sebjørn Dahl said.

“With this agreement, we ensure sustainability from cradle to grave and lay the foundation for a new green industrial adventure in Norway.”

Globally, the construction industry accounts for 40% of greenhouse gas emissions, with steel being one of the largest contributors, according to the project.

Participants include leading companies from across the value chain, such as Statsbygg, the municipalities of Oslo and Bergen, Skanska, Green Yard, Equinor, DNB and SINTEF. The project is supported by a range of Norwegian public funding instruments through the Green Platform initiative.

Norway takes a stringent approach to policing ship recycling. Along the Norwegian coast, the country has developed seven EU-approved shipyards capable of decommissioning and upcycling. Among them, AF Offshore Decom at Vats is touted as the world’s most environmentally friendly decommissioning facility.

"All Norwegian yards have additional capacity, and several are equipped to handle large vessels. This agreement is the first step toward establishing Norwegian upcycling capacity – and a new green industry for Norway and Europe," the project said, noting the intention for Norwegian shipyards and the steel industry to compete with Turkey, which currently holds the EU’s only large-scale ship recycling capacity.