Electric Ferries Arrive in the US, and Some of Them Actually Fly

Vessev's fully electric hydrofoil boat cuts drag by about 66%, and that number is what makes electrifying ferries economically viable, according to the company's chief executive. The vessel lifted its hull about a foot and a half above New York Harbor during a recent demonstration ride, passing the Statue of Liberty and turning heads on a nearby sightseeing ferry.

"It's quite a curiosity at the moment," Eric Laakmann, chief executive and co-founder of Vessev, said.

Vessev builds fully electric hydrofoil boats. Underwater "wings" raise the hull out of the water as the boat accelerates, and the ride transforms from the familiar slap of waves into a smooth, almost airborne glide. "We're picking up speed. We're going for a takeoff," Laakmann said as the boat sped up.

Why hydrofoils change the math for electric boats

Water resistance is the core problem. Batteries are heavy, and that extra weight increases the power needed to push a vessel through the water. Hydrofoils attack the problem from the other direction: lift most of the hull out of the water and drag collapses.

"We substantially reduce the drag that you feel and that's really what makes electrification viable," Laakmann said.

What does this change for operators? Smaller battery packs. Vessev's 66% drag reduction lets its boats carry less battery weight, which cuts cost — usually the biggest barrier to electrifying a fleet.

But efficiency is only part of the equation. Converting a boat isn't just swapping a diesel engine for a motor. Operators must weigh how far a vessel travels, how many passengers it carries, how quickly it recharges, and how much weight it can take on.

From novelty ride to everyday transit

Vessev runs passenger services in New Zealand and is expanding to Australia. Its first US service is planned for Lake Tahoe. Laakmann's ambition goes well beyond tourist routes.

"More like subways, more like buses, more like Ubers, more like taxis but on the water," he said.

The timing matters. Transportation is the largest source of greenhouse gas emissions in the United States, according to federal environmental data. Road vehicles account for most of that, but ships and watercraft burn fossil fuels too. Replacing diesel ferries with electric vessels could cut emissions and improve air quality around busy waterfronts — while moving passengers without adding cars to crowded roads.

Vessev isn't alone. In Stockholm, commuters already ride electric hydrofoil ferries built by Sweden's Candela. The company says its design can reduce energy use by as much as 80% compared with conventional vessels of a similar type. Norway has ordered 20 of Candela's electric hydrofoil boats for coastal service.

"I think in a more sustainable future we're likely to see more and more vessels like this around the world," Laakmann said.

San Francisco plugs in half a billion dollars

San Francisco's largest ferry operator carries about 3.5 million passengers a year, according to Seamus Murphy, who leads the agency. "We have a lot of waterfront," Murphy said. The network serves a region shaped by water, with commuters relying on boats to cross the bay.

Yet all 18 vessels in the system run on diesel. That's set to change: the agency will add four battery-powered ferries over the next two years, part of an electric overhaul worth about half a billion dollars that also includes charging infrastructure at the docks.

The engineering challenge differs sharply from cars. A ferry can't plug in at home overnight — it repeats trips on a fixed timetable. Its batteries must cover the route, while shore-side chargers must deliver enough power during the minutes the vessel spends at the terminal.

San Francisco won't use hydrofoil boats initially. Even so, the agency says the new vessels will make it the first ferry operator in the United States to run high-speed, all-electric ferries.

Do the economics actually work?

For transit agencies, climate goals alone rarely justify a fleet overhaul. Battery-powered ferries demand more upfront investment in vessels and charging equipment. The payoff comes later: electric motors can be more efficient than diesel engines, and operators may save over time on fuel and maintenance. Murphy said rising diesel costs and better battery technology strengthened the case.

"You make the upfront investment at the beginning and then you save over time and at the end of the day you're going to have lower costs in the long term," he said.

Route economics decide everything. Batteries remain heavy and expensive, charging infrastructure costs real money, and long distances, tight schedules, and limited recharge windows can all break the business case.

There's also an industrial angle. The boats and batteries for San Francisco's expansion are being built in the United States, which could create domestic manufacturing jobs. For Murphy, the transition is a chance to cut pollution while building new business for shipbuilders and battery makers.

"These jobs are going to get created in other countries and we have an ability to create them here if we manage this in the right way," Murphy said. "We don't want to be left behind."

With Candela already carrying Stockholm commuters and Norway's 20-boat order in hand, the US market is the next frontier — and San Francisco's half-billion-dollar bet will be the test case every American operator watches.