Volvo Penta and Aus Ships partner on Australia's first fully electric passenger ferry

Australian shipbuilder Aus Ships and Volvo Penta are developing what will be the country's first 100% electrically driven passenger ferry. The vessel is currently under construction, with commissioning due in Q4 2026. After that, it will operate as a demonstrator before entering regular service.

The ferry will carry a twin installation of the Volvo Penta IPS450E electric propulsion system, rated at 250 kW per driveline. According to Volvo Penta, it will be the first vessel anywhere to enter the market with this configuration. The onboard energy system pairs a 460 kWh battery pack with solar panels. For its demonstration phase, which will cover routes across Australia, the vessel will also include a Volvo Penta D4 variable-speed genset as a range extender.

The IPS Electric platform draws on more than two decades of Volvo Penta IPS development. The system integrates forward-facing propulsion with Electronic Vessel Control (EVC), and the helm station includes 8-inch Type Approved Displays, heavy-duty control levers and joystick control. In electric mode, low-speed manoeuvring, joystick docking and the Dynamic Positioning System (DPS) remain available.

Philippa Wood, Head of Volvo Penta Oceania, says: "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."

She continues: "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."

Tommy Ericson, Director of Aus Ships, says: "From a ship designer's and builder's perspective, integrating this level of propulsion and control capability into a commercial passenger vessel opens new possibilities for both efficiency and passenger experience."

Aus Ships has long experience with high-speed catamaran construction, including Brisbane's CityCats, and currently holds fleet replacement contracts running through 2029.

The project received an AUD 2 million grant from the Australia-Singapore Low Emissions Technologies (ASLET) initiative, funded jointly by the Australian and Singaporean governments. ASLET is co-delivered by CSIRO, Australia's national science agency, and the Maritime Port Authority of Singapore.

Dr Fiona Scholes, ASLET Program Manager at CSIRO, comments: "Collaboration is so important in bringing new technologies to market. Marine transport is one of the most challenging sectors to decarbonize, but this project will demonstrate that clean 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."

The longer-term plan is to develop a fleet of similar ferries operating on routes along Australia's east coast, including Brisbane and Sydney.

From a production standpoint, the IPS drives have already been delivered. Additional electric components are due in the coming months, with the bulk of hardware expected on site by July.

William Bratt, Director of Sales and Marketing at Volvo Penta Marine, says: "This collaboration validates the direction we are taking as an industry. Electrification is no longer a future ambition -- it's happening now. By working closely with partners like Aus Ships, we're enabling a transition that benefits operators and society alike through reduced emissions, quieter waterways and more sustainable urban transport systems."

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