China bets on electric ships to power green transport push

China, February 23: Having electrified its highways, China is mobilising its shipbuilding prowess and battery giants such as CATL to overhaul some shipping fleets, betting that the revolution in green transport can float as well as it drives.
The shift towards clean energy underscores Beijing's broader decarbonisation commitment - vowing to peak carbon emissions by 2030 and achieve neutrality by 2060. These goals have spurred substantial strides in renewable capacity installation, end-use revamps, new technology development and carbon trading.
More than 1,000 vessels powered by electricity or alternative fuels are currently operating on China's vast network of inland waterways, including 485 e-vessels, most of which are river passenger ships, according to data from the Ministry of Transport.
However, some governments and companies are pivoting towards the development of electric cargo vessels, moving beyond short-haul passenger ships but largely confining this shift for now to domestic waterways rather than international deep-sea freight.
Fujian Shipbuilding Industry Group launched a pure-electric cargo ship on February 7. Designed to transport up to 1,000 tonnes of freight on the Min River, the vessel boasts a 200km (124-mile) range on a single charge.
Contemporary Amperex Technology (CATL), the world's largest EV battery producer, has partnered with Jining Energy, a state-owned firm in Shandong province, to develop electric vessels with a 2,000-tonne load capacity and a range of up to 270km (158 miles) on a single charge. Five units were launched in December, with Jining Energy placing orders for an additional 50 ships.
"The order marks a transition of electric cargo ships," CATL stated in an emailed response to questions, "from technical demonstration to large-scale commercial operation". Beyond its domestic market, CATL is also exporting its e-vessel solutions.
The battery giant has teamed up with French shipping titan CMA CGM to co-develop a 182 TEU electric barge to transport goods on a 180km (112-mile) trip between Vietnam's Binh Duong province and the deep-sea terminal in Cai Mep. A TEU, or 20-foot equivalent unit, signifies the capacity of a standard shipping container.
Construction of the e-barge began in June, with operations expected to commence later this year, CATL said.
Driven by China's "dual carbon" targets and supportive policy, including subsidies, Chinese shipyards are growing more confident in electric vessels, the company said. Late last year, it announced that its self-developed pure electric vessel would sail the oceans in three years, as range limits are extended.
The policy support cited by CATL includes a June directive on inland shipping issued by six government bodies, including the Ministry of Transport. The directive mandates the advancement of green vessels, prioritising battery technology for short-haul routes and calling for the expansion of charging and battery-swapping infrastructure.
Provinces with inland or coastal shipping needs have been leading by example. The southeastern province of Fujian, where CATL is based, accounted for 34.5 per cent of the nation's electric-vessel fleet as of June, with its core equipment having captured more than 40 per cent of the domestic market, local media outlet Fujian Daily reported in October.
Due to limitations in range and cargo capacity, e-vessels are best suited for short-haul, fixed-route operations with frequent port calls, such as inland waterways and coastal freight, Fujian Shipbuilding Industry Group said in an emailed response to questions.
Electric vessels offer zero emissions and lower operational costs, but their total upfront cost remains significantly higher due to the pricey batteries and electric propulsion systems, the group said.
CATL echoed such cost concerns, saying that the upfront price of an e-vessel could be more than twice that of a diesel-powered counterpart of equal size.
However, the company noted that cost challenges could be mitigated through a "ship-battery separation" model, allowing shipowners to lease batteries rather than purchase them outright.
Despite China's dominance in electric vehicles, translating that success to the water is not just about cost - it comes with unique technical challenges.
Batteries must operate in extreme maritime environments characterised by high humidity, salt spray and constant vibration, CATL said, noting that ensuring absolute reliability over a 20-year lifespan, alongside building a robust charging network, remains critical for the sector's development.
"The future of electric shipping lies in cross-sector synergy," the company said, explaining success would require shipbuilders, ports, grid utilities and financiers to build a tighter ecosystem that addresses the integrated challenges of infrastructure, investment and operations.
Source: Qatar Tribune