Latest news with #EVMaritime
NZ Herald
03-08-2025
- Business
- NZ Herald
Fullers boss on electric ferries vs diesel as AT changes course
The Vessev VS-9's hydrofoiling technology was adapted from America's Cup yachts. Photo / Supplied At the same time, Fullers chief executive Mike Horne has come out as an advocate for electric ferries (and in the longer term, hydrogen-powered boats). The current set-up involves AT choosing the strategy, then paying for electric, hybrid or diesel ferries that run on publicly-subsidised routes, which are then operated by Fullers. So Fullers will run whatever types of ferries are commissioned by AT. But Horne says his firm, which is controlled by a private equity owner (that is, one of the bluntest expressions of the free market), thinks electric is the best financial option. He makes it clear that when he's spending his own company's money, he sees electric as the only way to go. 'New Zealand is a net importer of fossil fuels. By transitioning to domestically sourced energy options, such as hydroelectricity, we can reduce our reliance on imports and improve energy security,' says Fullers chief executive Mike Horne. Photo / Jason Oxenham 'Everyone gets a bit confused with the cost of building a boat and the cost of operating a boat over time,' Horne says. 'I look at the whole-of-life. 'And if I'm investing commercially, which I am, I'm going to the electric boats every time. 'Over time, they are materially cheaper than running a diesel boat. 'I'm certainly not looking to build new diesel boats for my commercial fleet for exactly that reason. They make no economic sense.' Cheaper to run 'In terms of op-ex [operating expenses], we've got three big costs: labour, maintenance and fuel. Taking out fossil fuel and putting in electricity is about 75% cheaper; that's a game-changer for an operational organisation over time. 'And the other one is R&M [repairs and maintenance]. A diesel engine needs to be replaced every five to seven years over 25 to 30 years. They've got 6000 moving parts and lots of vibration, that's what kills those engines – and they're really, really expensive.' The first electric ferries will have one major cost: replacing their 11 tonnes of lithium-ion batteries after eight to 10 years. The cost is estimated at $1 million, though EV Maritime says economies of scale might have taken effect in a decade's time. Horne says the electric ferries will be 'materially cheaper to run' than diesels but won't put a dollar value or percentage on it at this point, because the electric models have yet to go into service. Electric ferries and reliability EV Maritime's model will be Auckland's first electric ferry, but not the first in New Zealand. Wellington got a smaller electric ferry, the Ika Rere, in March 2022. However, it recently spent 10 months out of action, which was blamed on difficulties sourcing spare parts – a point picked up on by some Auckland councillors as they questioned the new technology's reliability. Horne said the Wellington boat was the result of 'a really bespoke process', while Fullers has been working with Whanganui's QWest (builder of the two hybrid ferries) and Christchurch's HamiltonJet (maker of the propulsion systems for the two hybrids and the two electric ferries) over three years 'and at every point we've been looking at the viability of specific parts'. 'And I'm not saying that as a boat builder chasing unicorns but as an operator of 40 years who knows exactly what we need to run big boats reliably.' The on-pier charging system was being built to a global standard. Second hydrofoiling electric boat Horne has put his money where his mouth is. Fullers put the initial investment into the two 300-passenger hybrid ferries, later integrated into AT's seven (now four) electric ferry build. The firm has also backed Auckland start-up Vessev and bought its first 10-passenger 'VS-9″ hydrofoiling electric boat, built at a cost of around $1m. The VS-9 is being used for harbour tour charters. This week, Fullers said it has added a second VS-9 to its fleet. The first was Vessev's prototype and not perfect. The Herald found it too loud for regular conversation. Horne says the first production model has a 'torpedo'-style engine beneath the water, eliminating the noise issue. Vessev, whose largest shareholders are Icehouse Ventures, Blackbird and Sir Stephen Tindall, says it will make its first international deliveries next year. Horne sees the VS-9 as a 'proof of concept' and stepping stone to a 100-passenger Vessev craft – for now, still on the drawing board. That would be a step up in cost (the first electric ferry, which seats 200, came in on budget at $20m). Auckland Mayor Wayne Brown has recently been on a push to establish himself as a technology leader, through his successful lobbying to get the Government's new advanced research agency (in part replacing the Wellington-based Callaghan Innovation) hosted in his city and his creation of The Auckland Innovation & Technology Alliance and the creation of the Auckland Tech Council. But BusinessDesk tech commentator Peter Griffin recently saw 'technophobic dithering' in the AT's decision to 'double down on diesel-powered ferries'. AT's shift in sentiment away from electric ferries is out-and-out bad news for East Tāmaki-based EV Maritime, designer of Auckland's first two electric ferries. AT says Auckland's ferry fleet carries 6% of Auckland's commuters but produces 20% of all emissions from public transport as it burns through 13 million litres of diesel a year. The first electric ferry (pictured) will be zero-emission, but Fullers boss Mike Horne says it's also cheaper to leave diesel behind. Photo / Dean Purcell Horne, diplomatically, says he supports the mayor's innovation alliance. 'The opportunities for electrification, foiling and introducing other low-emission technologies to New Zealand are abundant. 'Kiwi innovation is both scalable and exciting, and we are well-positioned to continue pioneering a way forward using alternative energy sources. 'Switching to alternate fuels such as electric, foiling and hydrogen is a sound choice for the environment, and that's just where the benefits begin. As a commercial business, it makes firm economic sense and, better yet, it makes sense for New Zealand. 'These alternate fuel advancements are already on the world stage [EV Maritime has a deal with a design deal with a San Francisco ferry operator]; it's all proven technology, and it's our job to harness and scale it. 'New Zealand is a net importer of fossil fuels. By transitioning to domestically sourced energy options, such as hydroelectricity, we can reduce our reliance on imports and improve energy security,' said Horne. Deal or no deal? The Australian recently reported that Fullers' British owner, Souter, had 'tapped Cameron Partners' as it considered a possible sale of the ferry business. 'Fullers is not in any process at the moment,' Horne said. The chief executive said he constantly fielded interest in the business, which he always kicked upstairs to Souter. Fullers took some chunky hits during the pandemic as commuters disappeared during lockdowns. A chronic staff shortage followed. Its accounts for the year to March 31, 2024, showed the business in recovery with its net loss shrinking from $4.3m in FY2023 to $1.2m as its revenue rose from $70.2m to $80.2m. Contract income from AT rose from $39.4m to $43m. Its FY25 numbers are due shortly. Two-story megacharging building gets the go-ahead With the first electric ferry on the water (it's now undergoing several months of testing), the pressure is on to get megachargers online at Queens Wharf (that is, the downtown ferry terminal), Half Moon Bay and Hobsonville Point under a $27.6m contract signed with electrification firm ABB. Hobsonville Point is nowhere. Its charger will need pontoon upgrades to the local pier. That work is expected to be completed in 2026 but it might take until a 2028 funding round for the charger installation to be completed. At Half Moon Bay, things are almost good to go. 'The charger has been successfully pre-commissioned, and we are co-ordinating with vessel manufacturers on the timing of load testing as part of their broader testing and commissioning programmes,' AT programme director Nathan Cammock told the Herald earlier this week. The problem is that AT has said the first electric ferry will operate with 10-minute top-up charges at both ends as customers get on and off. However, when it arrives in the city from Half Moon Bay, there will be no megachargers. An artist's impression of the two-storey electric ferry charging building that will be located on the northeastern end of Queens Wharf. On June 10, as the first electric ferry was launched, the two-storey building that will house three 3.3 megawatt chargers did not even have resource consent. It's now over the line, but AT is vague on when construction will begin, let alone when it will be online. Earlier this week, Cammock said, 'The resource consent has been granted for the Downtown electric ferry charging infrastructure and works are now under way beneath the wharf to prepare for cable tray installation and cable pulling. 'With the consent now received, we are working to finalise our construction sequencing, including co-ordination with existing wharf activities, including events, cruise ship movements and public transport operations. 'We do not have an ETA to share at this time; however, our intention is to install and commission the three chargers in stages, taking into account any lessons learned and optimisations from Half Moon Bay as we gain operational experience.' Horne points out that the two hybrid ferries on the way for the Devonport-city. centre run will have diesel generators as a back-up, so they'll be able to run no matter how far behind AT is with its megacharger installation. Chris Keall is an Auckland-based member of the Herald's business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.
RNZ News
11-06-2025
- Business
- RNZ News
Auckland's new electric ferries set to make waves worldwide
Auckland Transport's first electric ferry has touched water for the first time. Workers began the slow process of bringing the vessel from the McMullen & Wing shipyard factory floor into the nearby Tamaki River in Mt Wellington early Wednesday morning. The first of two fully electric ferries will undergo technical tests here over the coming weeks, before trialling its seaworthiness inside the Hauraki Gulf. "In about a month's time we'll be taking it down the river and charging up at Auckland Transport's new charging station in Half Moon Bay," said EV Maritime chief executive Michael Eaglen. "Then we'll be doing trialling more broadly on the Hauraki Gulf, which we're expecting to be handing over to Auckland Transport in probably around about three months' time. "These are highly automated boats, so you test all the automation systems, take it to the point where we can then hand it over to Auckland Transport who can bring their operator on board and get into crew training," he said. Auckland Transport ferry programme director Nathan Cammock said the main route the EV Maritime ferries will run will be between Half Moon Bay and downtown Auckland, although they may take the occasional trip to Devonport and Hobsonville Point. "They're designed for mid-harbour routes so those are routes between 30 to 45 minutes journey time." "These two new electric vessels will service the Half Moon Bay route and we may see them go to other destinations over time," said Cammock. He said each boat cost about $20 million. "The New Zealand government has provided the biggest contribution around two-thirds of the cost of each vessel, the remaining third is split between NZTA Waka Kotahi and Auckland Council. "So a lot of parties have come together to make sure this project is successful," he said. The first work on the boats began in 2022 and they could begin service before the end of year, although Auckland Transport said there was still no fixed date for when commercial sailing will start. "We're not keen to rush it, we want it fully tested and commissioned and any issues are worked out so when it's handed over to Auckland Transport its working as expected," said Cammock. The fully electric ferries were designed by EV Maritime, while the propulsion technology was created by HamiltonJet in Christchurch. The ferry is made from carbon-fibre composite will be able to reach speeds of up to 25 knots - or 46 km/h - with a capacity of 200 passengers. The ferries are expected to have a lifespan of more than 30 years. Auckland Transport said the batteries were anticipated to have a lifespan of about 10 years before requiring a replacement. Although Auckland Transport did expect newer, lighter and higher-capacity batteries to be available as technology advances. The EV Charger that will be used at the ferry terminals can operate at roughly 10 times the speed of a Tesla supercharger, rated at up to 3.3 megawatts. The ferries will charge while passengers board and disembark, needing 10 minutes of charge time to have enough power for a one-way journey. It is expected they will do eight return trips per day, meaning they will need to charge 16 times over the course of a day's service. McMullen & Wing director David Porter said today's launch was a success and showcased the strength of New Zealand innovation. "The day is a milestone in which we can show the world what is possible and I know there are people out there for some time, looking to ride on these ferry boats and be convinced that it all works," he said. "There's scepticism always in new technology but today we've taken a real step in proving that we're on our way." "There's a great team in the background, I don't build the boats, we've got a team that do. Michael's (Eaglen) team does the design work and it all fits in together and we've got a great group of really good contractors," said Porter. The New Zealand designed and made electric ferries were also world leading. Eaglen said the eyes of the world were eagerly watching the project, with only two or three other similar ventures known internationally. "This is a really high-profile project from an international ferry world perspective, as I said, there's been a lot of vehicle ferries electrified, but very few fast passenger ferries," he said. "We've got a lot of people very keenly aware of what we're doing here and very much looking forward to coming down here. "It's believed to be the first one going into a really rigourous, high-frequency core public transport service and it's also the first one to be using the new megawatt charging standard, which I think is going to be the new standard for electric ferry operations around the world. "So this is a really important demonstrator for EV Maritime as a project for our kind of export ambitions. "We're really grateful to the government and to Auckland Transport for supporting us with putting their faith in us for these first projects and helping us get these first boats in the water and demonstrated because that's how you grow an export industry, and that's what we're trying to do here," said Eaglen. Cammock said they were keen to support launch what could be a new industry for New Zealand. "It's a great example of New Zealand innovation... a great opportunity for a technology export industry to grow off the back of New Zealand's existing maritime industry. "EV Maritime have been proactive in the market and have got some early contracts overseas and we're looking forward to supporting that with these new boats going on the water," he said. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
