In a move that could significantly accelerate the adoption of zero-emission technology in the U.S. maritime sector, Maritime Partners and SWITCH Maritime have closed a sale leaseback refinancing deal for the hydrogen-powered passenger ferry “Sea Change.” This transaction not only marks Maritime Partners’ entry into the ferry sector but also signals a strategic partnership aimed at modernizing the aging U.S. ferry fleet.
The “Sea Change,” which began commercial operation in San Francisco Bay in 2024, is a 75-passenger ferry and SWITCH’s first vessel. The refinancing deal will enable SWITCH to leverage the technological learnings and regulatory frameworks from this initial project to support the next phase of its build cycle. According to Pace Ralli, CEO at SWITCH Maritime, the proceeds will be used to complete engineering and support the development of zero-emission vessels that can match the size and performance of diesel vessels in major U.S. markets such as San Francisco, Seattle, Boston, and New York City.
This partnership aligns with Maritime Partners’ commitment to innovation and expanding its financing solutions into critical transportation segments of the maritime industry. Dave Lee, VP of Technology & Innovation at Maritime Partners, emphasized this point, stating, “This partnership demonstrates Maritime Partners’ continued commitment to innovation, and to expanding our financing solutions into more critical transportation segments of the maritime industry that require capital to renew and future-proof their fleets.”
SWITCH Maritime is not just focusing on the “Sea Change.” The company is bringing nearly complete designs for 150- and 300-passenger catamaran fast ferries, as well as a larger steel-hull RoPax ferry design, to the U.S. market. These designs aim to replace aging diesel vessels, and the technology is generally applicable to commercial harbor craft, of which there are approximately 4,400 vessels suitable for upgrade to zero emissions.
The “Sea Change” has already demonstrated the viability of hydrogen-powered technology in commercial operation as part of the public San Francisco Bay Ferry system. This success paves the way for future deployments and sets a precedent for other operators to consider similar transitions.
Austin Sperry, co-founder and president of Maritime Partners, expressed admiration for SWITCH’s ability to execute on complex design, construction, and regulatory challenges. He highlighted the complementary nature of SWITCH’s work with Maritime Partners’ projects, such as those with e1 Marine. Sperry stated, “Maritime Partners is here to support the expansion of SWITCH’s fleet of next-generation vessels with financing solutions for U.S. and global ferry operators.”
The implications of this partnership extend beyond the immediate transaction. It sets a precedent for how financing and technology can converge to drive the maritime industry towards a more sustainable future. The success of the “Sea Change” and the subsequent projects could influence other operators to adopt zero-emission technologies, thereby reducing the carbon footprint of the maritime sector.
Moreover, the collaboration between Maritime Partners and SWITCH Maritime underscores the importance of strategic partnerships in overcoming the challenges associated with transitioning to new technologies. By providing financing solutions and support services, Maritime Partners enables SWITCH to focus on innovation and execution, ultimately accelerating the energy transition in the maritime industry.
In the broader context, this deal could shape future developments in the sector by demonstrating the feasibility and benefits of hydrogen-powered vessels. It may encourage other financing entities to invest in similar projects, fostering a more competitive and innovative maritime industry. Additionally, the success of these projects could influence regulatory frameworks, potentially leading to more stringent emissions standards and incentives for zero-emission technologies.
As the maritime industry continues to evolve, partnerships like this one will be crucial in driving innovation and sustainability. The collaboration between Maritime Partners and SWITCH Maritime not only paves the way for upgraded hydrogen-powered marine technology but also sets a benchmark for future developments in the sector.