180413 ferries

World’s first battery-operated ferries charge up asset valuation

Articles | 13 April 2018

With the vision of rolling out the world’s first battery-operated ferries, our unlisted infrastructure team acquired HH Ferries, whose cutting-edge technology will benefit commuters, the environment and the asset’s valuation.

HH Ferries operates the historic ‘Floating Bridge’ ferry route – connecting Helsingør (Denmark) and Helsingborg (Sweden) in just 20 minutes. An inherent part of HH Ferries' strategy is to actively safeguard the environment; since 2007 the ferries have adhered to emission regulations only introduced in 2015. The battery operation means another leap ahead as a leader in the sector.

Following conversion of the operator’s two largest ferries to battery power, fleet emissions will be halved, saving a total of 25,000 tons carbon dioxide each year. The 640 batteries on each vessel are the equivalent of 70 Tesla ‘Model S’ cars and will charge with 100% renewable electricity. Surplus heat from the battery system will be harvested to warm the ferries in winter and cool them in summer, saving even more energy.

How does this boost an asset’s value?

Not only is the investment economically viable with pay back of the outlay over the medium term, conversion to battery power reduces risk and exposure to price volatility of other fuel sources.

When selecting investments, our unlisted infrastructure team invest for the long-term and searches for businesses with high quality ESG performance in their core operations. Because our portfolio companies offer essential or strategic infrastructure services to the communities they serve, good ESG practice is morally – and financially – paramount.

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