The maritime industry is witnessing a significant shift as Maritime Partners, LLC, a New Orleans-based provider of maritime financing solutions, has announced a sale leaseback refinancing deal for the hydrogen-powered passenger ferry, Sea Change. This transaction marks Maritime Partners’ entry into the ferry sector and the beginning of a partnership with SWITCH Maritime, LLC, aimed at modernizing the aging U.S. ferry fleet with next-generation technology.
The Sea Change, a 70-foot, 75-passenger ferry operating in the San Francisco Bay Ferry fleet, is a testament to this technological advancement. Powered by 360 kW hydrogen fuel cells and a 100kWh lithium-ion battery, the vessel has been in commercial operation since 2024. The refinancing deal will enable SWITCH to leverage the success of the Sea Change and accelerate the development of larger, zero-emission vessels.
Dave Lee, VP of Technology & Innovation at Maritime Partners, emphasized the company’s commitment to innovation and expanding financing solutions into critical transportation segments. “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,” Lee said.
SWITCH Maritime, the developer of the Sea Change, plans to use the proceeds from the refinancing to complete engineering and support the next phase of building zero-emission vessels. These vessels are designed to match the size and performance of diesel vessels needing replacement in major U.S. markets such as San Francisco, Seattle, Boston, and New York City.
Pace Ralli, CEO at SWITCH Maritime, expressed enthusiasm about the future build cycle. “We’re excited to build on the foundation that we’ve established with the Sea Change and start our next build cycle,” Ralli said. “Core to advancing our mission is being able to finance projects on the leading edge of the technology adoption curve, and our partnership and strategic alignment with Maritime Partners helps accelerate that growth trajectory.”
SWITCH is leveraging technological learnings and regulatory frameworks from the Sea Change to introduce nearly complete designs for 150- and 300-passenger catamaran fast ferries, as well as a larger steel-hull RoPax ferry design. These designs aim to replace aging diesel vessels in the U.S. market.
According to the companies, there are more than 800 ferries in the U.S. suitable for transitioning to electric propulsion, powered by batteries and/or hydrogen fuel cells. Additionally, the technology is applicable to approximately 4,400 commercial harbor craft, offering significant opportunities for zero-emission upgrades.
SWITCH specializes in providing existing operators with easier and lower-risk ways to adopt next-gen vessels into their fleets. The company offers vessel leases along with support services for fueling, crew training, maintenance, and more.
Austin Sperry, co-founder and president of Maritime Partners, highlighted the successful execution of design, construction, and regulatory challenges by the SWITCH team. “We are impressed by the SWITCH team’s ability to successfully execute on difficult design, construction and regulatory challenges, and their work is very complimentary to our work in larger vessel types, such as our projects with e1 Marine. 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,” Sperry said.
This partnership and the successful operation of the Sea Change demonstrate the viability of hydrogen-powered ferries in commercial settings. The collaboration between Maritime Partners and SWITCH Maritime is poised to shape the future of the ferry sector, driving the adoption of zero-emission technologies and setting new standards for sustainable maritime transportation.
The implications of this development are far-reaching. As more ferry operators consider transitioning to zero-emission vessels, the demand for innovative financing solutions and technological support will grow. This could lead to a ripple effect, encouraging other sectors of the maritime industry to explore similar advancements. The success of the Sea Change and the partnership between Maritime Partners and SWITCH Maritime could very well become a blueprint for the future of maritime transportation, paving the way for a more sustainable and technologically advanced industry.