Electrification of vehicles of all types is a megatrend. Bikes, cars, and even planes run on electricity. Consumers are turning their backs on combustion engines and regulators play along by placing stricter restrictions on the use of fossil fuels.
This trend is also getting stronger in marine traffic. Electrification of the seas has started from propulsion systems of sailing yachts, but the industry is vigorously developing new solutions for other types of watercraft as well.
Already today, there are many regulations beneficial for the environment. As the discussion about climate change continues and new bans on combustion engines are put in place, we expect environmental regulations to be a significant positive driver for Oceanvolt’s business.
Here are some promising examples of this new way of thinking:
Patents give Oceanvolt an edge
Oceanvolt’s market position is further enhanced by the fact that the company has patented its key technologies. Oceanvolt has 8 patents in selected strategic geographical areas (US, EU, GB, and Finland).
The patents include ServoProp pitch drive technology, cooling element for AXC motor, and vibration-reducing mounting method. In addition, Oceanvolt has full ownership (3D pictures, 2D drawings and work pictures) for all the main components of the propulsion system, throttle levers, and displays.
Oceanvolt is a leader in electric seafaring
Oceanvolt delivers clean electric and hybrid power and propulsion systems for a range of marine activities. The company has been active since 2004. Our in-depth research and development give us a unique competitive advantage in the market.
We serve a number of needs in maritime traffic from sailboats to small passenger ferries. Oceanvolt offers its products through several boat builders, such as Voyage Yachts, Spirit Yachts, Arcona Yachts, Q Yachts, McConaghy Boats, Schionning Designs, and J/Boats.
These companies offer Oceanvolt’s propulsion systems to their customers as a more ecological, safe, and silent alternative to traditional combustion engines. In parts of Europe, regulations can actively direct demand to electric alternatives.
We estimate that our market share for new built sailing mono- and multihulls was approximately 1-1.5% in 2018. Therefor there is a great growth potential as diesel engines will be replaced by electric motors in new built yachts.
Agent sales are almost half (43%) of our revenue in 2018 and we expect the amount to continue to grow proportionally in 2019. The partner network was expanded in 2018 with five new agents, eight dealers, and nine certified installers.
Our key markets are Finland, Sweden, Norway, the United Kingdom, Germany, the Netherlands, Belgium, France, Italy, South Africa, Australia, New Zealand and USA. The legal entity and daughter company Oceanvolt Inc. covers sales activities in USA, Canada and the Caribbean where the potential for catamaran charter business is significant
Oceanvolt stands on the threshold to scale up the business from custom production to serial production. Below a few examples of repeat business opportunities:
- Pacific
- Traditional sailing vessel equipped with twin AXC motors. First system successfully delivered and with a potential of 40 systems, 1,8M€
- South Africa / Caribbean
- Group of companies with activities both as builder of catamaran systems as well as charter operator. First systems of Sail Drive successfully in use. Potential of more then 30 systems and 2 M€
- European City
- Tourist Ferries. First 2 systems delivered, 3 more ordered, potential of 30 systems, 1,2 M€
Oceanvolt product line
Oceanvolt’s clean electric power & propulsion systems cater for many different use cases from daysailers to cruising monohulls, racing catamarans and non-planing motor boats. This diversity gives us a good position in the market.
Oceanvolt ServoProp – Award winning variable pitch sail drive
The patented Oceanvolt ServoProp variable pitch sail drive combines a high efficiency sail drive with the most powerful hydro generation on the market. ServoProp’s unique feature is the possibility to turn the propeller blades more than 180 degrees.
The software-controlled variable pitch sail drive adjusts the pitch of the propeller blades automatically. This means that the power generation and power output are optimal. Combined with uniquely designed blades, it delivers optimal efficiency in both forward, reverse, and hydro generation mode. And with the blades set to neutral sailing position, the propeller creates extremely low drag similar to the drag of a feathering propeller.
A normal fixed propeller does not by nature have the blades ideally shaped for hydro generation and generates less than half of the power of ServoProp at a given boat speed. ServoProp can generate more than 1 kW at 7–8 knots and 3 kW at 11–12 knots. The generated power can be used to power both the propulsion system as well as all the electronics on board without a need for a separate generator. With this in mind, we can start to talk about the possibility of a completely self-sufficient cruiser.
The ServoProp is suitable as a propulsion motor for monohulls up to 50 ft and multihulls up to 60 ft. It can also be used as a hydro generator in boats up to 100 ft.
Oceanvolt AXC – Modular shaft drive motor systems
The Oceanvolt AXC series provides higher performance, greater durability and more comfort than ever before. The Oceanvolt AXC series is a modular system available in four power configurations: 10 kW, 20 kW, 30 kW, and 40 kW. The most powerful configuration provides power to the equivalent of up to 100 hp.
The motors have been designed for the benefit of customers operating larger, heavier displacement boats including charter catamarans, non-planing motorboats, heavy duty commercial boats, and small passenger ferries.
Oceanvolt SD & AX
In addition to the above-mentioned motor series, Oceanvolt also has two other more basic product lines to cater the smaller size range of boats.
The Oceanvolt SD sail drives have a power range between 6 kW to 15 kW. The SD motors are specially designed for folding propellers. They feature a patented mounting method which reduces vibrations and can be installed directly onto existing Volvo Penta and Yanmar mounting beds. This makes retrofitting the motors as simple as possible and increases the potential market size for these motors.
The Oceanvolt AX series of shaft drive motors (3–8 kW) are compact, easy to install and maintain, and perfect for daysailers, small cruisers, and multihulls or racing boats.
Market positioning & competition
In our view, there is only one serious competitor in the electric propulsion market to Oceanvolt, a German company called Torqeedo Gmbh. This was also noted in the February 2019 edition of the world biggest sailing magazine Yachting World in their article “Ditch the diesel” that featured both Oceanvolt and Torqeedo as the two key players in the market.
Other companies providing electric propulsion systems include Elco, Bellmarine, and GreenStar Marine.
Although the competition in electric propulsion remains sparse, the biggest competitors for Oceanvolt’s systems still remain the well-known traditional diesel engine brands, such as Volvo Penta and Yanmar. What differentiates Oceanvolt from the competition is that the company offers complete systems with the most powerful hydrogeneration on the market that can be maintained and serviced through the Internet.
Summary: Why should I invest in Oceanvolt?
- Electrification of vehicles is a megatrend.
- Tightening regulations are a strong tailwind for our business.
- Oceanvolt has unique patented technologies that make sailing greener and more enjoyable.
- With our strong product portfolio and strategic investments in our processes and marketing we estimate to become profitable in 2020.
