Houston-Based Battery Power Startup Gets Backing From Maersk
Many shipping-industry analysts have downplayed the potential of hybrid or battery-electric propulsion for long-distance ocean routes, since the energy density of lithium-ion batteries is low relative to other power storage methods. The batteries are heavy and bulky, this line of thinking goes, and the sheer mass could use up all the deadweight that the ship needs for cargo. But a recently-founded pioneer in the space, Fleetzero, thinks that it can make it work commercially - and it has attracted serious backers.
In a newly-announced Series A financing round, Fleetzero raised $43 million from some big names in VC investment, including Bill Gates' Breakthrough Energy Ventures; Maersk Growth; Obvious Ventures, launched by Twitter founder Evan Williams; 8090 Industries; Y Combinator, Benson Capital and Shorewind, among others.
"Fleetzero is making robotic ships a reality today. The team is moving us from dirty, dangerous, and expensive to clean, safe, and cost-effective. It's like watching the future today," said Andrew Beebe, Managing Director at Obvious Ventures. "We backed the team because they are mariners and engineers, know the industry deeply, and are scaling with real ships and customers, not just renderings."
Fleetzero plans to use the Series A financing to build out manufacturing of its new hybrid and electric powerplant, which it says is rolling out now globally on commercial ships. The company is setting up a new manufacturing hub in Houston, where it can tap lots of industrial expertise. Initial capacity is planned at 300 MWh per year, with expectations to grow tenfold within five years.
Steven Henderson, co-founder and CEO of Fleetzero, says that hybrid and electric options are "simply cheaper" than conventional powerplants, and claims that electrification is "inevitable." The objective is to lower TCO: battery-electric power requires less maintenance, and the company's business proposition includes high levels of automation and autonomy.
Fleetzero's vision has attracted well-capitalized, experienced backers. MOL's MOL Plus VC financing firm has invested, and tanker giant AET has explored the possibility of retrofitting one of its small Lightering Support Vessels (LSV) with a plug-in hybrid-electric system. And in the latest round, Maersk has added its name to the list.
"We believe that electrification will be an important part of the mix on our journey to reach net-zero," said Morten Bo Christiansen, Head of Energy Transition at A.P. Moller-Maersk. "Their ambitions that go from battery technology to broader infrastructure make them a great partner for Maersk."
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The startup is working with ABS to define technical requirements for containerized batteries, covering designs, testing methods and quality control procedures - all of the safety items that are required for class approval. Energy density remains a hurdle, ABS says, as it is for other battery power systems.
"The next step is overcoming key barriers to deployment, most notably the constraints of energy density compared to conventional fuels and the associated safety challenges. We are proud to join Fleetzero in this effort to explore new approaches with safety as our guiding principle," said Michael Kei, ABS Vice President, Technology.
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