Steven Henderson, Co-Founder & CEO, Fleetzero

Invest: spoke with Steven Henderson, co-founder and CEO of Fleetzero, about how electrification, robotics, and remotely operated vessels could reshape commercial shipping. “Fleetzero’s mission is simply to make shipping better,” Henderson said, highlighting the company’s focus on making maritime transportation safer, cleaner, and more affordable.

How is Fleetzero making zero-emission shipping commercially viable?

Fleetzero is a marine technology company. We build technologies that are going to power the maritime industry into the future, including new propulsion systems, robotics, and artificial intelligence. Our focus is on what companies that ship goods across the ocean actually need.

The maritime industry is enormous, but people often do not notice it because it is so efficient and works quietly in the background. They tend to notice shipping when there are disruptions, whether those are supply chain problems following COVID-19 or geopolitical events that bring ships back into the news.

Although it often operates in the background, maritime transportation is a vital part of the global economy. Fleetzero’s mission is simply to make shipping better. That means making it safer, cleaner, and more affordable so global trade can continue to grow.

The cost of shipping goods has a direct impact on the global economy. The cheaper it is to import or export by sea, the more trade can occur, the more prosperity can grow, and the more people can participate in the global economy. We also need to accomplish that while respecting the environment.

Fleetzero is unique because our technology can lower emissions from ships while making them less expensive to operate. A solution must be scalable to have a meaningful impact. We use electrification and robotics to reduce emissions and costs compared with traditional diesel propulsion systems.

What advances have made battery-powered shipping possible?

My co-founder and I came from the maritime industry, so we saw the need for new propulsion technology before much of the general public did. Our careers spanned transportation and energy, and we saw how far electrification had advanced in automotive and other industries while shipping lagged behind.

We’re going to make the same technological improvements that made electric vehicles and autonomous systems work on land work on ships. Batteries needed to become more energy dense, less expensive, more reliable, and available at greater scale. Grid storage and the automotive industry helped create that scale, improving quality while reducing costs.

We recognized that trend and saw what electrification could enable in the maritime sector. I spent years sailing as an officer on ships, and one of the most common activities at sea is repairing equipment, especially the propulsion system. Traditional diesel engines require hands-on operation and maintenance.

An electric system can be operated by a crew that is not living aboard the vessel. When electrification is combined with software and satellite communications, crews can operate ships from shore, where they are not exposed to the same risks.

This also makes ships cheaper to build. For smaller vessels, as much as 80% of the cost can be tied to propulsion and systems required to support people. A ship still needs food storage, kitchens, medical facilities, fresh water, sewage systems, and other utilities. A remotely operated vessel still has a crew, but that crew works ashore, reducing both construction and operating costs.

How does the Leviathan system support existing and new vessels?

Our Leviathan energy storage system can be added to a conventional ship. Companies are doing that because it can make vessels more efficient while reducing fuel use and maintenance.

For new-build vessels, electrification can be integrated from the beginning. A vessel can be designed for remote operation, reducing the cost of the propulsion system and the infrastructure needed to support an onboard crew.

That is the broader power of electrification. It is not only about replacing diesel fuel. It changes how the ship can be designed, built, operated, and maintained.

What is the advantage of swappable battery containers?

Fleetzero pioneered containerized energy storage systems that are movable and not permanently attached to the ship. This helps solve the charging challenge.

Charging a large ship quickly requires significant infrastructure. If the battery is removable, it can be charged elsewhere and exchanged when the vessel reaches port. That allows the vessel to replenish its energy quickly while reducing the infrastructure needed to support electric shipping.

Swappable batteries provide utilities and port operators with a more practical path for expanding charging infrastructure.

It is not the right solution for every vessel or trade route, but it is a model we pioneered early. We make an energy-dense marine battery container as well as our modular Leviathan marine battery product.

Why is electrification the most practical decarbonization pathway?

Electrification is available today. Some alternative fuels may become viable, and it is important for the industry to explore them, but options such as ammonia and methanol are likely to increase costs.

We believe it is important for society, the global economy, and our customers to pursue solutions that reduce the total cost of ownership rather than increase it. Electrification is the only pathway we see today that can make shipping more affordable for customers while reducing emissions.

That is not necessarily true with every battery product. It is possible because of how Fleetzero has invested in research and development and built its technology. Our system can be less expensive for ship operators than diesel alone.

What does Fleetzero’s project with AET represent?

It is a fantastic project, although we generally allow the customer to lead the conversation about it. What is particularly important is that the project makes economic sense for the customer. It is not being driven by a grant or subsidy. It is simply the right decision for the business.

It is also one of the first commercial deployments of our latest Leviathan system. We have completed other deployments that are not as public, including earlier research and development work on our own vessels.

We are proud because the customer adopted the system based on economics. The solution is more cost-effective than diesel alone, demonstrating the commercial value of the technology.

What challenges have you faced in bringing the technology to market?

We are not the first marine battery company, but we are the best marine battery company. We also do not view ourselves only as a battery company. Marine batteries are one part of a wider suite of technologies and products we are developing.

The maritime industry can be compared to a large ship. It takes time for it to turn in a new direction, but once it starts moving, it develops significant momentum. That momentum has shifted toward electrification and toward Fleetzero.

We believe we are entering the market with the right products at the right moment. We are working with shipowners and charterers on electrification projects as well as complete autonomous vessels.

How are robotics and artificial intelligence shaping your vessels?

It is a fun time to be alive if you are an engineer. In our factory, robots use lasers for welding, cutting, and manufacturing our products.

We use camera vision systems and artificial intelligence in production, research, and business functions. We have also developed our own vision-based artificial intelligence for ship navigation through our OctoDrive series of autonomy products.

Many of the computers and algorithms we use were initially developed for other industries, and we are adapting them to maritime applications. Our focus is on building practical marine technology for commercial customers.

Many autonomous vessel projects concentrate on defense or military applications. Fleetzero is focused on cargo. That commercial focus differentiates us.

What is your long-term vision for Fleetzero and maritime transportation?

The cost of shipping an item by sea has followed a gradual downward trend throughout history. I view Fleetzero’s responsibility and measure of success as helping that trend continue.

Lower shipping costs create more trade and allow more people to participate in the global economy. We also need to protect the environment and improve life for mariners. Living at sea is difficult, and it can be a dangerous profession. I spent years away at sea, so I understand those challenges personally.

We want to make shipping safer and cleaner while continuing to reduce the cost of global trade. In the future, I believe every ship will have some degree of energy storage and autonomy.

We will also see more tele-operated cargo vessels. Crews may operate ships remotely, meet vessels in port, prepare them for the next voyage, and avoid spending months away from their families and medical care.

Technology has the ability to expand opportunity for everyone. That is the effect we believe electrification and autonomy can have on shipping and the global economy.