What's Happening?
Swedish electric vessel maker Candela has secured €30 million (approximately $32 million) in funding to expand its fleet of electric 'flying' boats used as commuter ferries. These vessels utilize computer-controlled hydrofoils to lift the hull above the water,
significantly reducing drag and energy consumption by up to 80%. This innovation allows for faster, smoother, and zero-emission travel compared to traditional diesel ferries. The funding round was led by The World Bank’s International Finance Corp. and included previous investors such as EQT Ventures and SEB Private Equity. Candela's P-12 vessels are already operational in cities like Stockholm, Gothenburg, Oslo, and Trondheim. The company plans to use the new capital to establish a second factory in Poland and fulfill orders for over 65 vessels, with deployments planned in India, the Middle East, and Southeast Asia.
Why It's Important?
Candela's innovative approach to waterborne transport offers a sustainable alternative to conventional diesel ferries, which are significant contributors to fossil fuel consumption and emissions. By reducing energy use and emissions, Candela's technology supports global efforts to combat climate change and transition to cleaner energy sources. The expansion of Candela's fleet could revolutionize urban transport by utilizing waterways more efficiently, potentially reducing traffic congestion and pollution in major cities. The funding also highlights the growing interest and investment in clean-tech solutions, despite a general downturn in the sector. This development could encourage further investment in sustainable transportation technologies, benefiting both the environment and urban infrastructure.
What's Next?
Candela plans to use the funding to build a second factory in Poland, which will help meet the demand for its vessels. The company has more than 65 vessels on order and aims to deploy them in various international markets, including India, where the P-12 fleet is expected to significantly reduce travel times between Navi Mumbai Airport and the city center. As Candela expands its operations, it may face challenges related to scaling production and navigating regulatory environments in different countries. The success of these deployments could pave the way for further adoption of electric ferries globally, influencing urban transport policies and infrastructure development.
