Government tones down size and hydrogen ambition of new ferry

The Estonian State Fleet will announce a tender this fall for the construction of a fifth ferry to operate between the mainland and the major islands. Compared to the initial plan, the new ferry, which will be smaller than previously planned and primarily use electricity as its energy source, is expected to be completed by the fall of 2026.
After conducting a procurement procedure and technical consultations with shipbuilding companies at the beginning of the year, the Estonian State Fleet, in collaboration with the Ministry of Climate, decided to make changes to the project for the fifth ferry to ensure construction costs remain within the initial budget of €40 million.
"The fifth ferry will be somewhat smaller than initially planned but will be more cost-effective for the state, allowing savings on both construction and operating costs as well as on the redevelopment of port infrastructure," commented Andres Laasma, director general of the State Fleet.
The procurement experience earlier this year revealed that one of the biggest obstacles to participation was the shipbuilders' lack of experience with hydrogen technologies. "Although functional technology is available on the market, many European shipbuilders are not ready to take on the responsibility of implementing such a large-scale hydrogen project. If they are, it is reflected in a high-risk margin, which in turn increases the construction cost of the vessel," Laasma explained.
In the new tender, the ship will retain its readiness for hydrogen technology, but electricity will remain the primary energy source. "The new construction tender makes the ship project simpler for shipbuilders, likely resulting in more companies being willing to submit bids," added Laasma.
The fundamental changes to the ship's design concept have also been submitted for review and evaluation to the Saaremaa municipal government.
Funding for the construction of the new ferry will come from the European Union's modernization fund and the state budget.
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Editor: Mirjam Mäekivi, Marcus Turovski