The vessel’s fuel will be produced from renewable electricity marking a paradigm shift towards entirely emissions-free marine transport.

Port Glasgow-based Ferguson Marine Engineering has successfully bid for funding from the European Union’s Horizon 2020 research and innovation fund to develop the HySeas III project.

The supported development is expected to cost around €12.6 million of which €9.3 million has been awarded by the European Union’s Horizon 2020 research and innovation fund.

The initial aim is to build and prove the vessel’s modular drive train onshore, testing for stress and durability under conditions employing real-world data from existing vessels, showing that such a vessel can operate safely and efficiently around Scotland’s coastline.

Following this successful test, a vessel will be built to operate in and around Orkney - which is already producing hydrogen in volume from constrained - and hence otherwise wasted - renewable energy.

The HySeas III project, jointly led by shipyard, Ferguson Marine and the University of St Andrews, includes Orkney Islands Council; Kongsberg Maritime (Norway); Ballard Power Systems Europe (Denmark); McPhy (France); DLR - German Aerospace Center; and Interferry (Belgium/US) the global trade association for ferry operators and suppliers.