Canadian ferry operator BC Ferries has secured a $75 million loan from the Canada Infrastructure Bank (CIB) to fund the purchase of four zero-emission ferries and install the required charging infrastructure.
Battery electric ferries and terminal upgrades are to be completed by fiscal 2027 and are estimated to reduce 9,000 tonnes of GHG emissions annually, according to the company.
The Island class vessels, which will be used on small volume and shorter routes, are part of the company’s ongoing efforts to replace its existing Island class fleet with quieter and more environmentally friendly ferries.
The existing diesel-hybrid vessels will be transferred to other routes to replace ferries that have reached their end of life.
As informed, the CIB’s loan will cover the higher upfront capital costs of the ferries compared to diesel, including charging infrastructure, helping to accelerate the electrification of one of the world’s largest ferry networks. Repayment of the investment will come from standard operating revenues comprised of passenger fares and retail revenues.
The investment is the CIB’s first in zero-emission ferries, which expands its transit portfolio beyond zero-emission buses.
BC Ferries provides year-round passenger and vehicle ferry services using 37 vessels serving 25 routes out of 47 terminals spread over 1,600 km of B.C. coastline.
“Partnering with BC Ferries on the CIB’s first electric ferry financing will help to accelerate the electrification of one of the world’s largest ferry networks. In addition to their environmental benefits, the new vessels will be quieter and offer more enjoyable commutes for local residents and visitors to communities in the greater Vancouver area,” Ehren Cory, Chief Executive Officer, Canada Infrastructure Bank, said.
Earlier this year, Dutch shipbuilder Damen secured a contract to build the four new hybrid ferries for BC Ferries. The units will be constructed in Romania.