- The electrification of marine transport is accelerating due to several factors including passenger demand for more environmentally friendly options, regulations to reduce emissions, and improving economics of battery storage technologies. - The addressable market for maritime battery and fuel cell technologies is projected to grow to $10 billion by 2030 as adoption increases across newbuild and retrofit vessels. - Battery-based marine electrification provides benefits beyond just propulsion such as reduced maintenance needs, ability to meet peak power demands quickly, backup power capabilities, and lower emissions.

1. April 2021
THERE ARE MASSIVE TAILWINDS ACCELERATING THE
ELECTRIFICATION OF MARINE TRANSPORT
Passenger demand for
greener experiences
EU Green Deal provides an action
plan to move to climate neutral
economy
Adoption rate
Contractual developments increase
Shipowner incentives to prioritize fuel savings
IMO regulations
Reduce CO2 emissions across
international shipping by >40% by 2030
Lower port fees for
low emission vessels
40 ports provide 5-25% discount
on port fees for Green Award
certified vessels
Oil majors’ action
Targets carbon neutral
operations by 2030-2050
Economics
Cost reductions and technology improvements
in battery storage are creating performance
enhancement with rapid investment paybacks
1

2. April 2021 2
MARITIME ELECTRIFICATION IS AT AN INFLEXION POINT, WITH $10BN
ADDRESSABLE MARKET BY 2030
0.4
0.9
1.5
2.4
3.0
3.8
4.7
5.9
0.1 0.2
0.7
1.5
2.4
3.7
4.8
6.2
8.1
10.6
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Maritime battery/fuel cell market size 2021-2030
80+x
1.2
1.8
2.8
3.5
4.3
5.4
6.8
0.7
1.7
2.9
4.8
6.0
7.5
9.4
11.7
0.2 0.4
1.2
2.8
4.5
7.3
9.6
12.5
16.3
21.4
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
GWh
Upside case (assumes 50% higher adoption)
2.2
3.5
5.5
6.9
8.7
10.9
13.9
Newbuilds Retrofits Repowering Fuel cells
Sources: Clarksons Research, DNV GL
$-billion

3. April 2021 3
ELECTRIFICATION OF MARINE IS NOT JUST ABOUT PROPULSION!
Reduce maintenance
Battery solutions require limited maintenance
Response time
Rapid load response helps meet
immediate power needs
Backup power in case of blackout
Battery solutions provide energy until the main system
is restored
Reduce running hours
Lowered probability of engine damage
Reduce methane slips
Zero/low unburnt methane emission due to better
fuel utilisation
Load levelling and peak shaving
Energy efficiency
Reduce or eliminate fuel cost
and CO2 emissions
Full electric or hybrid propulsion
Spinning reserve
Provides support for manoeuvring in ports
Materials handling
Loading, unloading, cranes and handling
Reduce or eliminate CO2 tax
Lower level of taxes

4. April 2021
BATTERY STORAGE IS ALREADY ‘IN-THE-MONEY’
WITH SHORTENING PAYBACK TIMES
2
0
3
3
2
2
1
2
0
3
3
3
5
3
5
7
8
5
3
5
5
5
5
5
Tanker
Bulk and cargo
Deep sea vessels
Fishing
Tug
Offshore OSV
Offshore E&P
Offshore renewables
Ferries
Ro-Ro
Cruise
Yacht
Source: Company information, DNV GL
1 Payback times are highly variable and are based on installed size and operational profile
Cruise
and
ferry
Offshore
Workboat
Merchant
Battery solutions payback time1 across vessel types compared to battery useful life (years)
10+ years
Average battery
useful life
Payback time can vary depending on
• Operational profile of the vessel
• Availability and price of shore power
• Public founding schemes
• Requirements for reducing pollution in
ports or Eco zones
Payback period for repowering is much
shorter as power electronics and interface do
not need to be replaced
Typical cost structure of battery
solutions
Battery
(33%)
Power electronics
(33%)
System
integration
(33%)
4