EST-Floattech to speed up electrification of shipping with new financial boost

Dutch energy storage systems provider EST-Floattech has received an investment of €4 million from Energy Transition Fund Rotterdam and existing shareholders to advance the electrification of the shipping industry.

The Energietransitiefonds Rotterdam, the investment fund of the municipality of Rotterdam, will contribute €3 million as the fund’s first investment in the maritime battery system. The remaining $1 million will be provided by existing shareholders Rotterdam Port Fund, PDENH, Ponooc, and Yard Energy.

“The investment of Energietransitiefonds Rotterdam and the current shareholders in EST-Floattech not only brings new capital, which helps us take the next step towards growth, it also shows that the Netherlands believes in the power of innovation and sustainable energy. With InnovationQuarter, we have added a new partner, and together with Ponooc, Yard Energy, Rotterdam Port Fund, and PDENH, we continue to build a future in which we contribute to making the maritime industry more sustainable,” Joep Gorgels, CFO and CBDO of EST-Floattech, commented.

“Rotterdam attracts companies that dare to invest in the energy transition. We are seeing this with EST-Floattech. Their innovative battery technology for ships contributes to the reduction of CO2 emissions in a sector where there is much to be gained. It is incredibly nice that through the Energietransitiefonds Rotterdam we can support companies like this,” Chantal Zeegers, the Alderman for Climate, Building, and Housing in Rotterdam, said.

EST-Floattech develops and produces lithium-ion battery systems for electric and hybrid propulsion of inland vessels, ferries, yachts, and more. Combined with in-house-developed software, the systems provide significant improvements when it comes to CO2 emissions, fuel costs, noise pollution, and air quality.

Lithium-ion batteries combine low weight with high energy density, low self-discharge, and long life. EST-Floattech’s battery management system monitors charge status, discharge status, temperature, and other parameters to ensure efficient and safe battery operation. The new Octopus Series battery system has been certified by classification bureaus DNV, Lloyd’s Register, and Bureau Veritas.

For the aluminum housing, insulation material, electronic components, and the racks in which the battery cells are installed, EST-Floattech is working with Dutch partners. The new investment will allow EST-Floattech to continue to grow nationally and internationally. The company is focusing on market leadership in Northwest Europe and is working with battery manufacturer DuraPower for access to Asia and Oceania. EST-Floattech also plans to focus on larger vessels in the future.

The electrification of shipping is said to have great social importance. Inland and maritime shipping together account for 16.5% of the Netherlands’ CO2 emissions.

As part of its “Green Deal Zeevaart, Binnenvaart en Havens” strategy, the Netherlands is committed to reducing the CO2 emissions of the Dutch inland shipping fleet by 40% to 50% in 2030 compared to 2015. It is envisaged that a minimum of 150 ships will have to sail zero-emission in that year.

What is more, goods transported by water are expected to increase significantly in the coming years. The EU is aiming for a 50% increase in transport via inland waterways and shorter sea routes by 2050 compared to 2015. For international shipping, volume growth of over 200% is even expected between 2023 and 2050. Currently, only 1% of the global fleet is electrified, and the sector needs to catch up tremendously to achieve net zero by 2050.

Since January 1st, 2024, the European CO2 emissions trading system EU ETS has been in place for larger ships, with smaller ships expected to follow in 2026. The increasing costs associated with CO2 emissions make electrification increasingly interesting within a rapidly growing market.