The loan will help BC Ferries finance the purchase of four hybrid electric ferries and install corresponding charging infrastructure

The Canada Infrastructure Bank (CIB) and BC Ferry Services have closed a deal that will see the federal financiers loan $75 million to the marine transportation group.

The CIB funds will help BC Ferries electrify its fleet and install charging infrastructure in its terminals. The plan was previously announced in 2023.

BC Ferries already uses diesel-hybrid ferries, but last year placed an order for four Island Class hybrid-electric ferries. These vessels have a smaller cargo volume and will go into service on shorter routes. The existing diesel-hybrids will move to routes where the service’s old ferries are reaching their end of life.

“Our partnership with the CIB to deliver these new Island Class vessels will increase system capacity, improve our flexibility to move ships across routes and make it easier to train and deploy our teams. It’ll also help us achieve important environmental benefits,” says Nicolas Jimenez, president and CEO of BC Ferries, in a press release.

The CIB confirms the loan will be repaid through “standard operating revenues comprised of passenger fares and retail revenues.”

Electrifying off-road sectors

The loan to BC Ferries marks the first time the CIB has invested in marine electrification.

Previously the CIB’s loans have gone towards installing public EV charging infrastructure, purchasing electric buses and grid energy storage.

“Partnering with BC Ferries on the CIB’s first electric ferry financing will help to accelerate the electrification of one of the world’s largest ferry networks. In addition to their environmental benefits, the new vessels will be quieter and offer more enjoyable commutes for local residents and visitors to communities in the greater Vancouver area,” says Ehren Corey, CEO of the Canada Infrastructure Bank.

BC Ferries operates 37 vessels over 25 routes year round. The four new hybrid-electric ferries were ordered in January 2024 and are capable of operating on 100 per cent electricity. They have a capacity of 47 vehicles and 390 passengers and crew. The ferries will operate between Nanaimo Harbour and Gabriola Island (two vessels) and Campbell River and Quadra Island (two vessels).

Delivery of the new hybrid-electric ferries and terminal upgrades will be complete by fiscal 2027. The upgrades could reduce up to 9,000 tonnes of GHG emissions annually.