Volvo Penta and Australian shipbuilder Aus Ships have announced a collaboration to develop what is expected to become Australia’s first fully electric drive passenger ferry.
The vessel is currently under construction and is scheduled for commissioning in the fourth quarter of 2026 before entering a demonstration phase ahead of commercial operation.
The ferry will use a twin installation of the Volvo Penta IPS450E electric propulsion system, with each driveline delivering 250 kW of power. It will be the first vessel globally to operate with this configuration.
The project also includes a 460 kWh battery system and onboard solar panels intended to support energy efficiency during operations.
During its demonstration phase, the vessel will also use a Volvo Penta D4 variable-speed genset as a range extender to support longer operating capability across Australian waterways. The project is intended to provide operational data on electric propulsion performance, maintenance and lifecycle costs in commercial marine environments.
Philippa Wood, Head of Volvo Penta Oceania said:This project represents a bold step towards low-emission transport in Australia. What we’re doing here goes beyond deploying new technology – it’s about validating a complete, integrated solution that delivers efficiency, reliability and confidence for operators. With our Electric IPS platform, we’re carrying decades of proven marine innovation into the electric era, combining performance with efficient, quieter propulsion.
In this installation, we’re using twin IPS450E electric drivelines, each delivering 250 kilowatts of power. The aim is to allow the vessel to operate using renewable energy sources with improved efficiency – while maintaining performance. For Volvo Penta, this is about more than a vessel. It’s about validating scalable electric marine propulsion solutions for Australia’s waterways.
The integrated Electric IPS platform combines propulsion and vessel control systems to improve manoeuvrability and energy management. The system also includes joystick docking, low-speed handling and dynamic positioning functions.
Aus Ships, which has previously built high-speed catamarans including Brisbane’s CityCats, is currently involved in fleet replacement programmes extending to 2029. The partners said the project is intended to support wider adoption of electric ferries in Australia.
Tommy Ericson, Director at Aus Ships said:We see this as a defining moment for the Australian marine industry. By combining our shipbuilding experience with Volvo Penta’s advanced electric propulsion technology, we are not only delivering a first-of-its-kind vessel – we are also laying the groundwork for a new generation of sustainable electrically driven passenger ferries. This is about creating a scalable model that can be replicated across the region.
The initiative has received 2 million AUD in funding through the Australia-Singapore Low Emissions Technologies initiative. The programme is jointly funded by the Australian and Singaporean governments and delivered by CSIRO and the Maritime and Port Authority of Singapore.
The long-term objective is to develop a scalable platform for future electric ferry deployments on routes including Brisbane and Sydney. The project also aligns with Volvo Penta’s wider electrification strategy, with further development of hybrid and electric marine systems expected through 2026 and 2027.
Dr Fiona Scholes, ASLET Program Manager at CSIRO, Australia’s national science agency, said:Collaboration is so important in bringing new technologies to market. Marine transport is one of the most challenging sectors to decarbonise, but this project will demonstrate that cleaner marine transport is possible in Australia. Demonstration projects like this generate real-world operating data on performance, reliability and cost – helping to build the evidence base needed to support wider adoption.
