New naval vessels create huge opportunities for the maritime value chain

Tuesday the Norwegian Government released its revised proposal for the Norwegian national budget 2024, outlining their expenditure allocations. The 2024 budget is impacted by the war in Ukraine and Norway allocates NOK 600 billion to the Armed Forces from this year to 2036. This boost will strengthen all branches. Long term the Navy plans to acquire at least five new frigates with anti-submarine helicopters, five new submarines, and a standardized vessel class of up to ten large and eighteen smaller vessels.

Robust and zero-emission vessels

The vessels are mainly operated from Haakonsvern, which is the main base of the Royal Norwegian Navy and one of the largest naval bases in Nord-Europa. It serves as the headquarters for the Norwegian Navy and home base for various naval vessels, including submarines, corvettes, mine sweepers, frigates, and logistics and support ships. The base hosts around 5400 personnel, including officers, conscripts, and civilian staff.

The entrance gate at Haakonsvern Orlogsstasjon. Photo: Jacob Østheim/Forsvaret. 

The Royal Norwegian Navy ensures Norway free access to sea by protecting, surveilling and controlling coastline and waters. In addition to protecting Norwegian sovereignty, the Coast Guard also handles customs and environmental supervision at sea, SAR-operations and docking control.

To fulfil the mission, the vessels therefor need to be mobile and flexible with high responsiveness and great endurance.

The Norwegian logistics vessel KNM Maud, here visiting Flåm, is the largest Norwegian naval vessel ever built. Photo: Egil Ingebrigtsen/Forsvaret. 

But in addition to securing Norwegian waters and coastline, the Norwegian Royal Navy adheres to the international and Norwegian environmental regulations for ships. As of January 2023, all ships, including naval vessels, must calculate their Energy Efficiency eXisting ships Index (EEXI) and report annual Carbon Intensity Indicator (CII) data. These measures aim to improve energy efficiency and reduce greenhouse gas emissions. The Norwegian Armed Forces aim to reduce emissions according to the 1.5°C target in the fight against climate change.

Transition to new fuels

Today the Navy accounts for 60 of the emissions from the Norwegian Armed Forces. A transformation to naval zero-emission vessels is needed to comply with the goal for emission cuts. New fuels are expected to be a part of the requirements for future suppliers of the new vessels. This opens several opportunities for the maritime value chain.

However, alternative fuels have other properties and risks than conventional fuel and new technology creates new risks.  To succeed the transition the Norwegian Navy is dependent on a supplier chain willing and able to deliver this new technology.

Greater Bergen is one of the world's most complete maritime commercial regions and is currently pioneering sustainable ship design and equipment with digital transition on every level. The cluster is delivering on the global marine aim to reduce emissions and costs through research and development of new marine design and technology. This opens several opportunities. Does your company have the skills and technology needed to tap into the Norwegian maritime value chain? We invite you to settle in our region to explore the possibilities.

• Vestland has a highly skilled and competent work force with 60% of jobs in the maritime sector.
• The region has fully integrated value chains and leading clusters collaborating a joint focus on sustainable solutions.
• Bergen is Norway’s second largest harbour with easy access to 18 industry parks.
• Procurement risk-averse companies willing to invest in innovative solutions.

Can Invest in Bergen help your business to settle in our region?

Don’t hesitate to contact any of our advisors.