Swedish company Candela has raised €30 million to expand production of its P-12 electric ferry, successfully closing the funding round despite a challenging environment for green technology financing.
A Swedish enterprise has completed a new funding round against the trend of an overall downturn in green tech investment, with backers betting that its electric vessels will appeal to public transport operators and commuters. Headquartered in Stockholm, Candela initially focused on developing hydrofoiling electric leisure yachts and is now applying its speedboat technology and expertise to the ferry sector.
Candela announced on Wednesday that it secured €30 million (approximately $34.6 million) to ramp up production of its P-12 ferry model, responding to growing market demand. Investors included Swedish private equity firm EQT Ventures, SEB Private Equity, the California Public Employees' Retirement System (CalPERS), yacht manufacturer Beneteau, and maritime investment firm Ocean Zero LLC.
This funding round, which involved both existing investors and new participant the International Finance Corporation (IFC), brings Candela's total funds raised to €129 million. The company plans to initiate an initial public offering (IPO) within the next two to three years.
Founded over a decade ago by Gustav Hasselskog, Candela aims to enter the passenger vessel market with the goal of shortening commute times while making journeys more economical, smoother, and environmentally friendly. Hasselskog stated that this round marks the company's largest funding achievement to date, even as climate tech fundraising volumes have shrunk by roughly 50% since 2021.
In an interview, Hasselskog noted that the acquisition and operating costs for Candela's vessels are lower than those of traditional diesel ferries. The company's hydrofoil system lifts the hull completely out of the water, significantly reducing drag and cutting energy consumption by up to 80% compared to conventional ships.
Candela utilizes smaller hull specifications than traditional diesel ferries. Conventional ferries are more energy-intensive, with high fuel and construction costs, forcing operators to typically run a limited number of large vessels that require full passenger loads to be profitable.
"The traditional ferry industry has almost no economies of scale, as most are one-off custom builds," Hasselskog said. "Our costs are already lower than traditional ferries, and they can be reduced further." The company emphasizes production standardization to shorten delivery times and cut manufacturing costs, producing smaller, cheaper-to-operate vessels. Candela estimates its operating costs are typically 90% lower than those of diesel ferries.
A recent trial of the P-12 on a commuter route by Stockholm's public transport operator yielded significant results: travel time was nearly halved, carbon dioxide emissions were reduced by 94%, and passenger numbers increased by nearly a quarter. Similar tests have been conducted in other parts of Sweden and in Norway.
The P-12 has a range of approximately 40 nautical miles when carrying 30 passengers and one crew member. "In practical operation, the boat can run for about two and a half hours continuously, then recharge in around an hour," Hasselskog explained. The vessel uses an automotive charging standard, allowing operators to utilize existing infrastructure like Tesla Superchargers without major investment in modifications. "Of course, you need to run some cables to the dock, but it's a minimal job," he added.
Similar to Tesla cars, Candela's vessels are cloud-connected, enabling the company to remotely troubleshoot technical issues and deploy software updates. With a growing order backlog, Candela plans to increase its annual production capacity to approximately 24 vessels by the end of this year.
Current orders for the P-12 exceed 65 units, with customers from Mumbai, Saudi Arabia, the Maldives, Thailand, and Berlin, and more orders are pending confirmation. To match production capacity and expand its manufacturing footprint, Candela intends to establish a second factory in Poland, funded by this latest round, and also plans to build a facility on the U.S. East Coast.
"The market potential in many cities is enormous, and we want to push forward aggressively to achieve scale," Hasselskog stated.
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