Austal bags $270M Swedish contract for ‘hydrogen ready’ vessel

Global shipbuilder Austal Ltd (ASX:ASB) has bagged a contract worth between A$265 and A$275 million to design and build a 130-metre combined cycle, “hydrogen-ready” passenger ferry for Gotlandsbolaget in Sweden.

The resulting ferry – a high-speed ROPAX catamaran – will be the largest vessel ever constructed by the company and will include a cycle propulsion system that comprises both gas and steam turbines.

The use of such a system for high-speed craft is a global first in shipbuilding, underscoring the uniqueness of the project, which will be undertaken by Austal Australasia.

The vessel will form part of Gotlandsbolaget’s ‘Horizon X’ program and will be able to transport 1,500 passengers, cargo and 400 vehicles.

Its construction will be undertaken at the Austal Philippines shipyard beginning in the first half of 2026 (with completion scheduled for mid-2028), using ‘green aluminium’ – which is produced using energy-efficient processes and technologies that use less carbon, resulting in lower emissions.

“Horizon X is an incredibly exciting project that is going to redefine commercial ferry capabilities, with a multi-fuel and hydrogen-capable combined cycle powerplant and a class-leading, efficient hull design,” CEO Paddy Gregg said.

“The flexible fuel technology… is leading the transition to decarbonisation of commercial ferries, and we’re proud to be at the forefront, partnering with Gotlandsbolaget, to deliver this industry-leading new ferry.”

Austal shares traded 1.03% lower on the news to sell at $3.84 each.

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