A new ferry developer has raised fresh capital towards its goal of making viable zero-emissions vessels a reality
American firm SWITCH Maritime has raised US$10M in a Series A round led by Nexus Development Capital to grow its fleet.
The company develops ferries that use batteries and hydrogen fuel cells for ferry operators looking to replace their diesel-powered fleets with lower emissions vessels.
The fundraising comes after SWITCH completed its flagship zero-emissions vessel Sea Change, a 21-m ferry which will operate as part of the public Water Emergency Transportation Authority’s San Francisco Bay Ferry fleet.
The 75-passenger ferry uses hydrogen fuel cells to produce electricity to power electric motors for distances up to 300 nautical miles, and speeds up to 15 knots, with the added benefits of no exhaust smoke and very little vibration and noise.
In 2022, the United States Coast Guard granted SWITCH regulatory approval for hydrogen powertrain and storage systems. Sea Change integrates hydrogen and electric powertrain systems which SWITCH believes can help unlock the possibility of progressing to larger ferry designs capable of operating at higher speeds on longer routes. The company said it is working on additional designs for vessels that can accommodate 150, 300 and 450 passengers.
Launched in August at All American Marine shipyard in Bellingham, Washington, Sea Change was designed by Incat Crowther and is equipped with a hydrogen fuel-cell system from Zero Emissions Industries, which includes 360-kW of fuel cells from Cummins, 242 kg of hydrogen storage tanks from Hexagon Purus, and a 600-kW electric propulsion system from BAE Systems which includes 100 kWh of lithium-ion battery storage from XALT. The construction management was led by the Hornblower Group.
“Nexus Development Capital is committed to helping companies bridge the gap between project conception and implementation by working together to take nascent technologies to market,” said Nexus Development Capital chief executive, Josh Kaufman. “SWITCH is filling a huge market gap in decarbonising the maritime industry, and we’re excited to work together to bring carbon-free sea transport to the US.”
As states like California begin to implement stringent emissions regulations and reporting requirements for commercial harbour craft including ferries, vessel operators will inevitably have to begin modernising and decarbonising their ageing fleets.
SWITCH said its model is meant to addresses the complex, resource-intensive process of technology integration, vessel construction and regulatory approvals for zero-emissions vessels.
To that end, SWITCH is providing ferry operators with support related to vessel design, financing and construction, offering short and long-term vessel lease options to avoid large upfront capital expenditure, and prepackaged carbon-neutral fuelling or charging infrastructure.
“Our objective is to take the stress out of the energy transition for ferry operators,” said SWITCH chief executive Pace Ralli.
“Everyone is under a lot of pressure to navigate the rapidly evolving technology and regulatory landscape, and without simple prepackaged solutions, that can be difficult.”
This project has received municipal support including a US$3M grant from the California Air Resources Board, administered by the Bay Area Air Quality Management District, that comes from California Climate Investments.
Additionally, the project received a US$5M loan guarantee under BAAQMD’s Climate Tech Finance programme.
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