The age of electrically powered ships is drawing ever closer, following in the footsteps of electric vehicles as the global shipping industry accelerates its transition towards decarbonization.
Although major companies such as Hanwha are presenting electric propulsion as a solution, there are still significant technical hurdles.
Kim Dong-kwan, vice chairman of Hanwha Group, proposed the creation of a "maritime ecosystem for electric ships" in a column published ahead of the World Economic Forum's annual meeting in Davos, Switzerland, on Monday, according to Hanwha.
Kim argued that the shipping industry, which has long relied on fossil fuels, needs to fundamentally transform its propulsion systems to achieve sustainable change.
He outlined the need for the development of electric ships, reliable energy storage systems (ESS), charging infrastructure in ports and decarbonized energy supply systems.
"For electric ships to be widely accepted, stable ESS are essential," said Kim. "We also need to improve access to battery charging and exchange infrastructure."
"Hanwha is setting the stage for ships and ports to evolve together with the entire ecosystem by deploying advanced ESS and clean energy solutions throughout the maritime infrastructure," he continued. "We are currently in discussions with European port authorities about pilot projects with ESS and ship charging systems."
Overseas, the commercialization of electric ships is also gaining momentum. China's CATL $3750 (-3,01Â %)the world's largest battery manufacturer, is well on its way to dominating the market for electric ships.
CATL - which holds a 40 percent share of the electric ship battery market - plans to launch its own all-electric ship within the next three years, according to the South China Morning Post âđ»
Another Chinese battery manufacturer, Gotion High-Tech, has already launched batteries for electric container ships.
The shipping industry's growing interest in electric drives is being driven by global regulatory changes. The International Maritime Organization (IMO) has set itself the goal of reducing greenhouse gas emissions from shipping to net zero by 2050.
To achieve this goal, the IMO has set interim targets to reduce emissions by at least 20 percent by 2030 and 70 percent by 2040 compared to 2008 levels.
The European Union has also tightened regulations on carbon emissions and requires shipping companies to purchase emission allowances for their total carbon emissions from 2027.
Electric ships offer several clear advantages. Compared to diesel-powered ships, they produce far less noise and vibration, reducing damage to marine ecosystems. Their simpler structure also results in lower maintenance costs over time.
While conventional combustion engine ships have an energy efficiency rating of around 20 percent, electric ships can achieve up to 40 percent, making them a more economical option.
As a result, according to market research firm Future Market Insights, the global market for electric vessels is expected to grow rapidly from USD 6.5 billion in 2025 to USD 58.8 billion in 2035 - an almost tenfold increase within a decade with a compound annual growth rate of 24.6 percent.
The company added that the adoption of hybrid and all-electric powertrain solutions is expected to increase.
However, there are still some challenges before large-scale adoption is feasible. At sea, charging infrastructure is still scarce. Therefore, onboard energy storage - in the form of ESS - is crucial for long voyages.
However, ESS units are currently heavy, expensive to install and not yet technologically mature, which limits their use in transoceanic vessels.
Therefore, the marine batteries supplied by CATL are mainly used in inland vessels and on short-distance cruises.
Another important aspect is safety, in particular the need to minimize the risk of fire at sea. Liquid immersion, a next-generation thermal management technique that uses non-conductive coolants to cool components, is emerging as an important technology.
In 2024, Hanwha Aerospace and SK Enmove announced that they had developed a technology in which lithium-ion battery modules are filled with cooling liquid to prevent fires in marine ESS. Their design prevents flames from spreading from one cell to another, but the technology has yet to be commercialized.
"Electrically powered ships are still at an early stage of development," said an industry insider. "To enable commercialization, we need substantial investment in research and development as well as institutional support."