Finland-based engine manufacturer Wartsila has signed a contract with Norwegian shipowner Eidesvik to make one of its platform supply vessels (PSV) capable of running on ammonia fuel, the company said in a statement on Monday.

The Viking Energy will be the world's first ammonia-fuelled in-service PSV, said Wartsila, which will be supplying the equipment necessary to convert the vessel.

Ammonia is one of several alternative fuels being explored by shippers in order to reduce carbon emissions.

The Viking Energy is chartered by Norway's Equinor, which is also financing the conversion.

The ship will be converted in early 2026 and is expected to start operating on ammonia by the end of the first half of the year.

Wartsila told Reuters previously that it expects to deliver its first ammonia-fuelled engine on a new vessel in early 2025, with more widespread sales expected in the 2030s.

The company launched its first ammonia four-stroke engine for orders in the fourth quarter of 2023. The technology can help cut greenhouse gas emissions by more than 70% compared to similar diesel-based solutions, it added.