Will high fuel prices boost ZES battery ships?

High fuel prices for trucking and shipping could encourage new investment in battery-powered inland waterway ships, according to Koen van Eig, Advisor, ZES, the Rotterdam-based marine battery supplier.

In an interview with AJOT in Rotterdam on May 27th, Van Eig said that while diesel fuel prices had stayed low, shifting to battery power did not make sense for most shipowners. However, that situation may have changed in the aftermath of the Iran War: “the prices of batteries have gone down and are now competitive with higher diesel prices and a 2,000-kWh power unit five years ago now can be had for the same price as a 3,000-kWh unit.”

Van Eig noted: “There are two shipowners operating with ZES batteries …These two vessels have an electric drive train …With a battery, the result … simplifies the engine room and reduces maintenance and you don't need the gearbox and propeller and propeller shaft. The power transmission is more efficient than on a standard diesel-powered engine with a gearbox, propeller and shaft.”

Van Eig explained that “those two shipowners have a contract with beer -maker Heineken for 70,000 containers per year, of which approximately two-thirds goes to Rotterdam, and one third goes to Antwerp. This is a ten-year charter which is almost unheard of but supports Heineken’s transformation to green energy operations.”

One battery pack on an inland waterway vessel can “power the vessel for an approximate range of 60 kilometers in calm water, and when the vessel reaches its destination, the onboard battery is swapped for a charged shoreside battery so that the vessel can resume its return journey without delays.”

According to a Port of Rotterdam report, the two shipowners Nedcargo and ITG are “taking a bold step and investing in future-proof inland shipping. They have also found the perfect partner in Zero Emission Services (ZES), a company with Ebusco, ING, Wärtsilä and the Port of Rotterdam Authority as shareholders. Together, the partners are leading the way in sustainable inland shipping by converting the container ship Den Bosch Max Groen to battery-electric operation between Den Bosch, Moerdijk, and Maasvlakte. The Alphenaar was previously converted and has been sailing using ZES technology since 2021.”

The report goes on to say that the ZES packs utilize standard 20-foot containers that contain batteries that are charged with 100% green electricity at stations along major shipping routes: Sailing on these interchangeable batteries utilizes standard containers, in which “we create a scalable and interchangeable solution,’ says Michael Beemer, CEO of ZES. ‘As a skipper, you don’t have to wait until the battery is fully charged. You simply switch and continue. This makes this system very practical for shipping. An additional advantage is that the battery can be charged at the most convenient times. Theoretically, it's possible to fully charge the battery within just three hours.”

The ZES pack is connected to the ship via a special plug, and the pay-per-use model adopted by ZES also offers advantages: “Shipping companies do not have to invest in expensive batteries or infrastructure; they only pay for energy consumption. ‘They do have to invest in the conversion of the vessel, but with our support, they can apply for funding under the ship subsidy regulation, so part of the costs is covered,’ says Beemer.