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HySeasIIIMediaReleaseMonday18May2018

FergusonMarinetoDevelopWorld’sFirstRenewables-PoweredHydrogenFerry–HySeasIII

£25millioninvestmenthastransformedFergusonMarineintooneofthemostadvancedshipyardsintheworld,

leadingthewaywithqualityproductionandInnovation

AtToday’sSmartShippingSymposiumhostedbytheCityofGlasgowCollegeFacultyofNauticalStudies,JimMcCollOBE,ChairmanandChiefExecutiveofClydeBlowersCapitalannouncedthatPortGlasgow-basedFergusonMarineEngineeringLimitedhassuccessfullyledaEuropeanconsortiuminabidforEUfundingsupporttopavethewayforthebuildingandlaunchoftheworld’sfirstsea-goingcarandpassengerferryfuelledbyHydrogen.

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Thesupporteddevelopmentisexpectedtocostaround€12.6millionofwhich€9.3millionhasbeenawardedbytheEuropeanUnion’sHorizon2020researchandinnovationfund.

The vessel’s fuelwill be produced from renewable electricitymarking a paradigm shifttowardsentirelyemissions-freemarinetransport.

HySeas III, jointly led by shipyard, FergusonMarine and the University of St Andrews,includes Orkney Islands Council; KongsbergMaritime (Norway); Ballard Power SystemsEurope (Denmark); McPhy (France); DLR - German Aerospace Center; and Interferry(Belgium/US)theglobaltradeassociationforferryoperatorsandsuppliers.

EmployingBallardtechnology,alreadyprovenacrossmillionsofmilesofroadtransport,the initial objective is to construct andprove the vessel’smodular drive trainonshore,testingforstressanddurabilityunderconditionsemployingreal-worlddatafromexistingvessels.

Orkney

Thesuccessfultestwillallowavesseltobeconstructed,inthealreadyassuredknowledgethatsuchavesselcanoperatesafelyandefficientlyaroundScotland’schallengingcoast.The vessel is planned to operate in and around Orkney - which is already producinghydrogeninvolumefromconstrained-andhenceotherwisewasted-renewableenergy.

DestinationKirkwall:ThecurrentShapinsayferrywiththechosenrouteforHYSEASIIIproject

inthebackground.HYSEASIIIwillcombinewithSurfNTurfhydrogenprojecttoprovide thereplacementvesselwithaHydrogenfuellingfacility

ChiefNavalArchitectChrisDunnofFergusonMarinesaid,“Over recentyearsFergusonMarine has been at the global forefront of green marine propulsion technologydevelopment.Thisexcitingprojectisyetanotherpositivesteponthatjourneyandputsusfirmly on track to deliver the world’s first zero emission, hydrogen fuel cell poweredcommercialROPAXferryin2020.”

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FergusonMarineChiefExecutive,GerryMarshall,added“Wenowhaveoneofthemostinnovative and competitive shipyards in Europewhich is capable of delivering ground-breakingprojectsforInverclyde,Scotlandandbeyond.HySeasIIIisalivingexampleofhowitcanbepossibletoleadtheworldinmarinetechnology.”

ProjectCoordinator,Dr.MartinSmithfromtheUniversityofSt.Andrewssaid,“This isaveryexcitingstagetobeatnow.ThisopenstherealpossibilityofScotlandandherkeyEuropeanpartners delivering anotherworld-first not simply in ship-building but also inbuildingsustainablelocalsourcesoffuellinginparallel.”

JimMcCollOBE,whoseClydeBlowersCapitalnowowns theonce-threatenedshipyard,commented,“Ferguson’swasthelastfull-servicecommercialshipyardontheRiverClyde.Sincetakingoverin2014,wehaveinvested£25milliontobringtheyarduptotheworld-classstandardswithanew,skilledworkforce,thathasprovidedtheconfidenceinleadingthishugelyimportant,ground-breakingproject.”

Innovativepartnership

Previously in 2012, Ferguson’s launched theMV Hallaig, the world’s first ever batteryhybrid ferry. The redeveloped yard achieved another first in November 2017 when itlaunched theMVGlenSannox, the firstUK ferrybuildwithdual-fuel capability (marinediesel & LNG). The Glen Sannox’ sister vessel is currently under construction at theshipyard.

TheUniversityofStAndrews, the3rdOldestUniversity in theEnglish-speakingworld, ishome toworld-class research anddevelopment in hydrogen, battery andother energytechnologies.A keypartof thedevelopmentaspect is the transferalof knowledgeandexpertiseintoreal-worldapplications-notleastinstretchingtheboundariesofwhathaspreviouslybeenthoughtofandachieved.

Dr. Smith fromTheUniversity,alongwith JimAndersonatCMAL (CaledonianMaritimeAssetsLimited)initiatedtheHySeasprogrammein2012.SupportfromScottishEnterpriseallowedtheideatobetakenfromanearlyfeasibilitystudytothepointwherethefocuscannowshiftintotestanddelivery.

Dr. Smith previously played a leading role in the introduction of hydrogen buses intoScotland, a development which is now set to move beyond Aberdeen with DundeecurrentlyfollowingandotherScottishcitiesconsideringfleetsoftheirown.

EuropeanBacking

SupportwillbeprovidedbyHorizon2020,theEU’slargesteverResearchandInnovationprogrammetodatewithabudgetofc.€80billionover7years(2014to2020).

TheHySeasIIIprojectformallybeginsonthe1stofJuly.

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ThisprojecthasreceivedfundingfromtheEuropeanUnion’sHorizon2020researchandinnovationundergrantagreementNo.769417

Transport Minister Humza Yousaf said:

“I’mdelightedtoseeFergusonMarineEngineeringLtd(FMEL)playtheirpartinwinningthislandmarkbid.

“It’sexcitingtoseetheFMELshipyardgettinginvolvedinsuchaninnovativeproject,joiningforceswithotherpublicandprivatesectorpartnersfromacrossEuropetotakeforwardtheplansfortheworld’sfirstvehicleandpassengerhydrogenferry.

“TheScottishGovernmentpublishedourClimateChangePlanearlierthisyear,settingoutapackageofpoliciesandproposalstocontinuedeliveringScotland’shighambitionsinthisarea and recently set out proposals to increase our climate targets from 2020 – 2050throughtheClimateChangeBill.HySeasIIIisthekindofground-breakingprojectthatfitsthoseambitions.

“This project will also help showcase the skills and facilities on offer at the shipyard.I will be following it with great interest and look forward to seeing Scottish expertisedeliveringaworldfirst.”

Forfurtherinformationcontact:

JohnWMorgan,HySeasIIICommunicationsManageroffice:+44(0)1475742405mobile:+44(0)7711299414

FergusonMarineNewarkWorksCastleStreetPortGlasgowInverclydePA145NGJohn.morgan@fergusonmarine.com

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HySeasIIIConsortiumMembersFergusonMarineEngineeringLimited www.fergusonmarine.comUniversityofStAndrews https://www.st-andrews.ac.uk

BallardPowerSystemsEuropeA/SwasfoundedinJanuary2007andisrecognizedasoneofthe leading players in the commercial application of heavy duty fuel cell solutions.HeadquarteredinHobro(Denmark),ouractivitiesarefocusedonthesebusinessareas:BackupPowerforcriticalinfrastructure;HeavyDutyMotiveapplicationforZeroEmissionTransport;andFuelcellBusServiceinEurope.

BallardPowerSystemsEuropeemploys50highlyskilledpeopleandhasmodernproductionfacilities.Thecompanyisowned100%byBallardPowerSystemsInc.inCanada- theworldleadingprovideroflowtemperaturePEMfuelcells.FormotiveandmarinecustomersBallardoffersflexible,scalablesolutionsforawiderangeofmotiveapplicationdutycyclesandpowerrequirements.

“We are ready to support the de-carbonization of shipswith true zero emissionpowersolutions!”

KristinaFløcheJuelsgaard, BusinessDevelopmentDirector,BallardPowerSystemsEuropewww.ballard.com

KongsbergMaritimeAS,Norwaydelivers systems fordynamicpositioningandnavigation,marineautomation,handlingsystems,safetymanagement,cargohandling,subseasurveyandconstruction,maritimetraining,satellitepositioning,andautonomoussolutions.Oursystemsenhanceefficiencyandsafetythroughoutthewholemaritimetechnologyspectrumandweofferadditionalcompetenceinprovidingturnkeyengineeringserviceswithintheshipbuildingandfloatingproductionsectors.

Kongsberg Maritime is a wholly owned subsidiary of Kongsberg Gruppen (KONGSBERG).KONGSBERG is an international technologycorporation thatdeliversadvancedand reliablesolutions that improve safety, security and performance in complex operations and duringextreme conditions. The Group is a customer focused organization with a worldwideperformanceculture.KONGSBERGworkswithdemandingcustomers in theglobaldefense,maritime,oilandgasandaerospaceindustries.

“We are excited to contribute realizing the world’s first sea-going hydrogen-poweredRoPaxferry.”

MortenStanger VicePresidentMerchantMarineSales,KongsbergMaritimeASwww.km.kongsberg.com

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OrkneyIslesCouncil/OrkneyFerries,withitsreputationforinnovationinrenewableenergyandlowcarbonprojects, isdelightedtohavebeenchosenasthelocationfortheHYSEASIIIhydrogenferryopportunity.

Theperfectferryroutefortrials;theprovenabilitytoproducehydrogenfromwindandtidalenergy; expertise in small RoRo ferry operations; and hosting the renewable energyorganisations which have already chosenOrkney as a place towork, all combine tomakeOrkneywithitspeopletheidealplacetoturnthisprojectfroman‘idea’tooperationalferry.

“IamdelightedthatthisexcitingprojecthaschosenOrkneyastheplacetotestand,hopefully,operatetheworldsfirstHydrogenRoRoferry.Weverymuchlookforwardto working with our partners from across Europe and, in time, the ScottishGovernment,aswemovefromconcepttoanoperationalferryoverthenextfewyears”.

CouncillorGrahamSinclair, Chair of the Development and Infrastructure Committee. Orkney islands Councilhttp://www.orkney.gov.uk

TheDLRInstituteofNetworkedEnergySystemsOldenburg,Germanydevelopstechnologiesandconceptsforfutureenergysupplybasedonrenewableenergysources.

The Institute’s three departments – Urban and Residential Technologies, Energy SystemsTechnologyandEnergySystemsAnalysis–workonsystem-relatedissuesforintelligentandefficientlinkingoftheelectricity,heatingandtransportsectors.Systemsofallsizesandlevelsare being investigated, ranging from individual installations and “smart” buildings tonetworked residential districts and cities. The Institute also evaluates energy systems atnationaland international levels, using its ownnetwork structuremodelsand technologyassessment methods. The technology assessment group identifies the potentials andrecommended actions through the economic, ecological and sociological assessment ofenergytechnologiesandsystems.

“Marinetransportationisapartoftheenergysystemwhichstillneedstobedecarbonised.Ourassessmentssupportthetransitionofthissectorinasustainabledirectionbytechno-economicandecologicalaswellasmarketpotentialassessmentsoffuelcellpoweredferries.Thereforethecompleteprocesschainwillbeanalysedincludingtheproductionofhydrogenonthebasisofgrid-connectedrenewablepowersources.” Dr.ThomasVogt, HeadofDepartment,DLRInstituteofNetworkedEnergySystems https://www.dlr.de

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McPhy contributes to the deployment of clean hydrogen throughout the world, in theframeworkoftheenergytransition,andasaleadingsupplierofhydrogenproduction,storageanddistributionequipment,Thankstoitswideinnovativeandcompetitiverangededicatedtothehydrogenenergy,zeroemissionmobilityandindustrialhydrogenmarkets,McPhyprovidesturnkey solutions to its Clients. These solutions are tailored to our Client applications:renewable energy surplus storage and valorization, fuel cell car refueling, rawmaterial forindustrialsites.

Asadesigner,manufacturerand integratorofhydrogenequipment since2008,McPhyhasthree development, engineering and production units based in Europe (France, Italy,Germany).Thecompany’sinternationalsubsidiariesensureaglobalsalescoverageofMcPhy’sinnovativehydrogensolutions.

“Hydrogenissimplyunavoidableifwearetosucceedintheenergytransitionforabetter,cleanerandsaferfuture.Byland,rail,airorbysea,hydrogenshowsitselfanefficient,reliableandcompetitiveenergy.

Thisiswhatweaimtodemonstrateduringthisspecificationphase,andwe’reproudtobringourexpertiseandour“Augmented”electrolyzersandhydrogenstations-for boats, but also in the future for hydrogen trains or buses - to contribute,alongsidetheHySeasconsortium,todesigntheproject’slandsideinfrastructure.

We aredelighted tobepartof thisuniqueprojectwhichopensup the futureofdecarbonizedseafreight.”

PascalMauberger, ChairmanandCEO,McPhy https://mcphy.com

Interferryhasamembershipofmorethan230operatorsandsuppliersin37countries,andistheonlytradeassociationrepresentingtheworldwideferryindustry.Interferryrepresentstheindustry on regulatory issues and facilitates networking and information exchange on keydevelopments–notleastregardingeco-friendlyalternativefuels.Theassociation’smainrolein HySeas III will be to communicate progress industry-wide via itswebsite, internal newsbulletins,socialmediaandcooperationonmediarelations.

“Thepotential forhydrogenasaferryfuelwill featureatour43rdannualconference inCancun,Mexico,thisOctober,whichunderlinesoursupportforthisimportantproject.It’saverytimelycollaboration,giventhattheInternationalMaritimeOrganizationreachedanaccordinApril requiringa50%reductioninmaritimeCO2emissionsby2050. Hydrogenraisestheextremelyinterestingpossibilityofalong-range,CO2-freeoption.”

JohanRoos RegulatoryAffairsDirector,Interferry http://www.interferry.com

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HySeasIIIsupport

ScottishEnterprise/ScotlandEuropa

“The HYSEAS project has put Scotland in a world leading position regarding thedevelopmentof sustainablemarine transportandwillplayavital role in supporting theambitionsoftheScottishGovernmenttoenableourtransitiontoalowcarboneconomy.

“ScottishEnterpriseispleasedtohavebeenabletosupporttheHYSEASconsortiumallthewaythroughitsdevelopment,frominitialfeasibilitytosuccessfullybiddingforthisHorizon2020fundingfromtheEuropeanUnion.

“We look forward tocontinuing tosupport theHYSEASpartners inworking towards thelaunchofafirstrenewableenergypoweredferry,whichwebelievewillleadtosubstantialnewmanufacturingopportunitiesandexportgrowthpotentialforScottishcompanies”

AndyMcDonald SectorDirectorEnergy&LowCarbonTechnologies,ScottishEnterprise:https://www.scottish-enterprise.com