In September 2024 the Maersk McKinney Møller Center produced a pre-feasibility study on battery-powered vessels. The report identified battery-hybrid propulsion as an essential part of shipping’s decarbonization toolkit. It demonstrates a clear understanding that batteries offer significant efficiency gains over internal combustion and that partial electrification can sharply reduce greenhouse gas emissions and local air pollution.
However, the core assumptions underpinning the economic modelling, specifically regarding battery system prices, are incorrect. The Maersk study built its economic analysis on a battery system price of around $300 per kWh. Even their sensitivity tests only considered costs down to only $200 per kWh. Their conclusion was that at these price points, the economics of battery-electric hybrids for maritime transport, particularly on deep-sea and medium-range routes, appeared marginal or at best cost-neutral.
In July 2025, the most recent auctions for large-scale lithium iron phosphate (LFP) battery storage systems in China cleared at just $51 per kWh. PSR
Source: Clean Technica: Read The Article
PSR Analysis. Re-evaluating the calculations to allow for actual price points for battery storage demonstrates that battery-electric hybrids transition from being marginally competitive to significantly cost-effective. The next question is how long will it take for the global shipping industry to start constructing charging stations along all the major shipping routes. PSR
Guy Youngs is Forecast and Technology Adoption Lead at Power Systems Research
