Candela secures €18.7m in funding to advance green water transport

Stockholm-based startup Candela has secured €18.7 million in funding to accelerate the adoption of sustainable waterborne transportation.

Founded in 2014, Candela aims to free lakes and oceans from fossil fuels by developing electric water vessels. Candela equips its vessels with its proprietary hydrofoils, called the C-Foil System, to elevate the hull above the water and minimise friction.

“Waterborne transport is the next frontier set for sustainable disruption, and it’s happening now.”

Gustav Hasselskog, Co-founder and CEO of Candela

The startup pairs the wing-like hydrofoils with an innovative propulsion technology called the Candela C-POD, which boosts propeller efficiency by 80 percent. Candela says its electric direct-drive machine requires no maintenance and can last 3,000 hours without service.

Candela’s boats consume 80 percent less energy than conventional vessels at high speed, meaning they can travel longer distances despite using battery power. Additionally, Candela claims that its products can cut operational costs by half.

The Swedish startup already launched a full-scale prototype of its product in 2016. It plans to use the recent funding for the mass production of its passenger ferry, the P-12 Shuttle.

“This new investment will unlock the potential of underutilised waterways for climate-friendly, high-speed commuting,” said co-founder and CEO Gustav Hasselskog.

“The P-12 Shuttle will in many cases be faster and cheaper than land transport like bus lines, and it will be profitable for operators from day one.”

Sweden’s EQT Ventures, Joel Eklund of Fosielund Holding and Svante Nilo Bengtsson of Marknadspotential led the funding round with participation from some other firms, such as Ocean Zero.

EQT Ventures partner Lars Jörnow said the P-12 Shuttle would be a “game changer” for water travel, insisting that Candela would revolutionize the waterborne transportation market with its product offerings.

Stockholm will be the first operator of the P-12 Shuttle, slated to serve passengers from the suburb of Ekerö to central Stockholm and vice versa. It is estimated that the ferry can reduce travel times to just 25 minutes. Usually, it takes 55 minutes to travel between the two locations via car, bus or regular diesel ferry.

In addition to the P-12 Shuttle, Candela offers other water travel solutions, such as the water taxis P-8 Voyager and P-8 Shuttle and the leisure boats C-7 and C-8.