The future of maritime transport: Electric ships that can carry hundreds of containers and thousands of people

China, Norway and Australia are working on different zero-emission initiatives, such as a ferry that will link Argentina and Uruguay and a freight vessel that can move 10,000 tons

The Incat Hull 096, an electric ferry that will link Argentina with Uruguay when completed.Incat Tasmania

Maritime shipping is one of the most efficient modes of transportation, accounting for approximately 90% of global trade while contributing only 3% to 4% of greenhouse gas emissions, according to EU estimates. Nonetheless, European legislation mandates a complex and gradual process of decarbonization.

Although the widespread adoption of electric ships will take time, several pioneering initiatives are paving the way for the future. China has already launched a fully electric container ship capable of carrying 10,000 tons, while Norway operates 70 electric ferries. Additionally, a new electric ferry has recently been introduced between Ibiza and Formentera in Spain’s Balearic Islands, and Australia is in the process of manufacturing a 130-meter-long electric vessel that will connect Argentina and Uruguay.

“We operate in one of the most challenging sectors to decarbonize. According to the International Maritime Organization, 99.6% of the fuels used by the global merchant fleet in 2023 were derived from fossil sources,” explains Elena Seco, director of the Spanish Shipowners’ Association (Anave). “This fleet can immediately utilize biofuels that are chemically similar to conventional fuels; however, the supply is limited, and these alternatives remain prohibitively expensive. Regardless, biofuels and energy efficiency measures represent the only viable short-term options for significantly reducing emissions from maritime transport,” she adds.

Electric vessel Green Water 01, from the Cosco Shipping Lines company.

The European strategy Fit for 55 aims to decrease the emissions intensity of energy used onboard ships weighing over 5,000 tons that dock at European ports, excluding fishing vessels. “This will be implemented gradually, with a target of a 2% reduction by 2025 [compared to 2020 levels], ultimately reaching an 80% reduction by 2050,” explains Ignacio Sánchez García, deputy director of Climate Change Adaptation at the Spanish Ministry for Ecological Transition.

Jacob Armstrong, an expert from the environmental NGO Transport & Environment (T&E), adds: “There are several immediate actions we can take to reduce the sector’s climate impact. One effective measure is to lower ship speeds, which can significantly cut emissions. Additionally, incorporating sails or wind-powered rotors on large vessels can decrease energy consumption by more than 10%.”

Regarding new fuels, he notes: “Research is underway into hydrogen, green ammonia, and methanol. These new fuels can be produced from fossil fuels, biomass, and green hydrogen; however, we believe that the only sustainable option available on a large scale is fuels derived from green hydrogen [e-fuels]. The challenge is that these alternatives are still quite expensive, while fossil fuels remain relatively inexpensive, so we should impose taxes on the latter.”

The Spanish multinational energy company Repsol is currently focused on developing fuels derived from biomass, such as used cooking oil and agro-food waste. According to its data, these fuels can reduce net emissions by up to 90%. While environmentalists acknowledge the positive aspect of revaluing waste, they caution that the emissions produced by the machinery remain unchanged. Repsol is already producing these biofuels on a large scale in Cartagena and has signed agreements with shipping companies like Royal Caribbean and Transmapi to utilize them. Additionally, the company is working on synthetic fuels, which it plans to test in collaboration with the state shipyard Navantia.

New fuels will also drive significant changes on land. “Ports are crucial to Spain’s decarbonization and energy transition,” explains Álvaro Rodríguez Dapena, president of Spain’s Ports of the State. The Spanish Climate Change Law mandates that these facilities boost energy efficiency, install renewable generation equipment, and upgrade port electricity networks. Furthermore, European regulations require ports to ensure electricity supply for ferries, container ships, and cruise ships by 2030, as well as developing infrastructure to supply liquid natural gas (LNG), hydrogen, ammonia, and methanol. Additionally, these facilities are being prepared to serve as logistical bases for offshore wind energy, ensuring that the power supplied to ships is renewable.

Emission-free ships

What about emission-free ships? “Batteries or fuel cells will see some adoption in the sector, but primarily for short-distance traffic,” explains Elena Seco from Anave. According to data from consultancy IHS Markit, the global merchant fleet is expected to consist of 64,953 vessels in 2024. Meanwhile, the classification society DNV reports that there are currently 207 operational purely electric vessels, with an additional 47 on order, accounting for just over 0.3% of the total fleet. “Generally, these are very small vessels that undertake short journeys,” Seco adds.

Cap de Barbaria electric ferry, from the Spanish company Baleària, which links Ibiza with Formentera. balearia

While still few in number, electric vessels are making a significant impact. One notable example is the Cap de Barbaria, Spain’s first electric ferry, recently launched by Baleària to operate between Ibiza and Formentera.

“The ferry, measuring 82 meters by 15.5 meters, can carry 350 passengers and 14 trucks, effectively eliminating pollution during approaches and while docked,” explains Javier Cervera, director of Energy Transition at Baleària. However, challenges remain: “Currently, there is no renewable energy capacity between the two islands, so we must charge the batteries using diesel engines for the crossing. We hope to eventually complete the entire route using electricity,” he adds. Cervera also chairs the Net-Zero Mar Alliance, which consists of 55 partners dedicated to developing green alternatives for maritime transport.

Batteries of the Chinese electric boat Green Water 01.

Much larger is the Green Water 01, a 120-by-26-meter container ship designed to transport thousands of tons in 100% electric mode. “Equipped with 36 battery containers providing 57 megawatts of power, the ship can carry 700 TEUs [Twenty-foot Equivalent Units], which amounts to approximately 10,000 tons. It has a range of about 700 kilometers in calm waters at a speed of 6.5 knots,” said Christian Klaus, European spokesperson for Cosco Shipping Lines, the company that launched it. The Chinese state-owned firm has already commenced operations with the ship on the route between the ports of Shanghai and Nanjing, located roughly 180 miles apart via waterways.

Meanwhile, the Australian company Incat Tasmania is constructing the Incat Hull 096, an electric ferry measuring 130 by 31.5 meters. “The batteries will weigh 287 tons and have a capacity of 40 megawatts, enabling the ship to travel for two hours at a speed of 25 knots while transporting 2,100 passengers and 225 cars,” explains Tom Cooper, spokesperson for the shipping company. When the Rio de la Plata company Buquebús puts the ferry into operation next year, it will connect Buenos Aires in Argentina with Colonia in Uruguay, in a journey lasting just over an hour that produces zero emissions.

Recreation of the future Incat Hull 096 electric ferry, which will link Argentina with Uruguay.Incat Tasmania

There are more examples to highlight. “Norway, a leader in electrification, launched its first electric ferry in 2015 and currently operates 70 of them. Additionally, some companies are exploring the implementation of this model in the English Channel,” says Jacob Armstrong from T&E. He concludes: “The technology already exists, and we have witnessed impressive advancements in a short time. All that is needed now is political will to establish a legislative framework that makes these options profitable compared to fossil fuels. We are increasingly seeing larger batteries with extended ranges, and we can expect this technology to explode in the coming years.”

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