SWITCH Maritime – a US-based company developing electrified, zero-emission ferries powered by battery and hydrogen fuel cells – recently announced that it has raised $10 million in a Series A round led by Nexus Development Capital to grow its fleet. Launched in 2018 by a veteran team of maritime energy transition leaders, SWITCH’s mission is to enable private and public municipal ferry operators to more easily replace their carbon-intensive, diesel-powered fleets while reducing operating and fueling costs over the lifetime of their vessels.
With the nearly 1,000 vessels in the U.S. fleet moving a total of over 100 million passengers and more than 25 million vehicles annually, ferries serve as a vital means of transportation for urban and rural communities across the country. While an important mode of transit, ferries represent a significant source of greenhouse gas emissions and particulate matter which negatively impact the air quality and health outcomes for local communities. The aging ferry fleets in the US burn tens of millions of gallons of diesel each year, and each diesel-burning ferry is a candidate for being converted or displaced with a low- or zero-emissions vessel.
SWITCH’s recent fundraising comes on the heels of the completion of its flagship zero-emission vessel, Sea Change – which will operate as part of the public Water Emergency Transportation Authority’s (WETA) SF Bay Ferry fleet. And the new 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. The only emission is pure water vapor, and this technology allows for new ferries to have the same performance capabilities as diesel-powered vessels and without the need for installing large-scale battery charging infrastructure on the shore.
As states like California are starting to implement stringent emissions regulations and reporting requirements for commercial harbor craft (including ferries), vessel operators are facing the reality that they need to modernize and decarbonize their aging fleets – often without the resources to successfully make the transition. SWITCH’s model addresses the complex, resource-intensive process of technology integration, vessel construction, and regulatory approvals for zero-emission vessels and offers them a painless path to a carbon-neutral, compliant fleet.
SWITCH provides operators with three key avenues of support: (1) vessel design, financing, and construction; (2) short- and long-term vessel lease options, alleviating large upfront capital expenditures, and (3) pre-packaged carbon-neutral fueling or charging infrastructure solutions. And these baseline services can be complemented by grant application writing and tax incentive administration, preventative & unplanned maintenance of new power systems onboard, management of all necessary permitting and crew training as well as next-generation carbon management and reporting.
Having received regulatory approval last year from the United States Coast Guard (USCG) for hydrogen powertrain and storage systems, Sea Change represents a culmination of years of cooperation with the USCG focused on safely integrating hydrogen and electric powertrain systems on passenger vessels and paves the path for SWITCH’s fleet expansion plans. Establishing a regulatory framework for this technology unlocks the possibility of progressing to larger ferry designs capable of operating at higher speeds on longer routes.
SWITCH is working on additional expansion designs for 150-, 300- and 450-passenger zero-emission ferries, leveraging the lessons learned from its flagship vessel and is ready to grow its fleet in key ferry markets across the US.
KEY QUOTES:
“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. SWITCH is filling a huge market gap in decarbonizing the maritime industry, and we’re excited to work together to bring carbon-free sea transport to the US.”
— Nexus Development Capital CEO Josh Kaufman
“Our objective is to take the stress out of the energy transition for ferry operators. Everyone is under a lot of pressure to navigate the rapidly evolving technology and regulatory landscape, and without simple pre-packaged solutions that can be difficult. At SWITCH, we’re excited to help make that transition easier, achieving important emissions reductions along the way.”
— Pace Ralli, CEO of SWITCH Maritime
