Enabling the electrification of transport on land and sea
Yinson GreenTech is offering companies greener options and expanding charging infrastructure in Singapore and Malaysia
SUSTAINABLE tech provider Yinson GreenTech (YGT) is doubling down on the “electrification megatrend” in mobility on land and sea, its chief executive Eirik Barclay told The Business Times.
“The exciting thing is that even today, electric vessels are so much cheaper to operate than diesel vessels. Their maintenance costs are lower; their fuel costs are lower; battery prices keep coming down,” said Barclay.
“Just as you’re seeing more and more electric cars and vans on the streets, you’re going to see more electric boats. It’s going to happen very quickly, for the simple reason that the operating costs are much lower than conventional vessels,” he said.
Established in 2020, YGT is the green technologies unit of Malaysia-listed energy infrastructure company Yinson Holdings. Based in Singapore, YGT focuses on sustainable innovation in the marine, mobility and infrastructure segments.
The company is part of the “Goal Zero” consortium that last year launched Singapore’s first fully electric cargo vessel. The Hydromover carries 25 tonnes of cargo but generates zero emissions. It can cut operational costs by as much as 50 per cent thanks to improved energy efficiency and lower maintenance costs, YGT estimates.
The Hydromover comes with a battery-swapping capability, which reduces vessel downtime – making it especially useful for cargo deliveries on a tight schedule. It is also fitted with data-driven decision-making capabilities, such as energy optimisation and waypoint calculation.
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YGT worked on the vessel’s programme management, system solutions and commercialisation, while its partners were involved in other aspects, such as vessel design and battery technology.
Projects such as the Hydromover represent a wave YGT hopes to ride, with its electric vessel business segment marinEV.
Singapore’s climate ambitions provide favourable winds. The Maritime and Port Authority of Singapore (MPA) has set a 2050 target for the harbour craft and pleasure craft sectors to achieve net-zero emissions.
From 2030, all new harbour craft will also have to be fully electric, be able to run on “B100” pure biodiesel, or be compatible with net-zero fuels such as hydrogen.
“That doesn’t mean that all the existing (harbour craft) will be gone by 2030. But we are very much working towards replacing all of them,” said Barclay.
YGT’s marinEV arm has also come up with the Hydroglyder, an electric crew transfer vessel that leverages hydrofoil technology – a structure under the vessel that lifts it above the water surface.
The hydrofoil lowers water resistance, allowing the vessel to glide at higher speeds without extra fuel consumption. The vessel is also designed with a lightweight composite hull for maximum energy efficiency.
The Hydroglyder uses 50 to 80 per cent less power than a vessel without a hydrofoil, YGT estimates. It also reduces energy costs by up to 90 per cent, and does not produce downstream emissions.
While the case for electric vessels is strong, Barclay said convincing fleet owners to make the transition will take time. YGT is working closely with the MPA, the Singapore Maritime Institute and other industry partners to “lead the charge” in vessel electrification, he said.
“This will be a process over the next 10 years… The marine business is a slow-moving business. It takes time to convince people,” Barclay added.
Electric on land
Beyond its marinEV electric vessel business, YGT is also building businesses in land-based electric vehicles – including electric two-wheelers – and charging infrastructure. These businesses are:
- drivEV, which leases electric vehicles to businesses
- rydeEV, which offers battery-swapping services for electric two-wheelers
- chargEV, an electric vehicle charge point operator in Malaysia
Its drivEV business offers a range of electric vehicle models to commercial customers, and provides maintenance services. It also provides the required charging infrastructure, by installing charging stations at the business premises or enabling access to public charging stations.
One notable customer is Malaysia’s postal service operator Pos Malaysia, which YGT has provided with 143 commercial smart electric vans.
YGT also developed a smart electric vehicle app for businesses to gain access to data on driving behaviour, vehicle status and performance, as well as to manage the vehicle keys digitally.
Its two-wheeler business, rydeEV, provides an offering it calls “battery-as-a-service”. This is in collaboration with Oyika, a Singapore-based startup that YGT backed in 2021.
Instead of buying batteries, electric two-wheeler riders can subscribe to a service that provides access to fully charged ones at various swapping stations. Without the need for individual battery ownership, YGT believes that battery disposal waste can be reduced.
“We’re doing swappable batteries for motorbikes because at the end of the day, South-east Asia has 250 million motorbikes. One of the biggest impact areas is actually on the two-wheeler side rather than the four-wheeler,” said Barclay.
While electric motorbikes are typically more expensive, the operating costs are about half that of petrol-powered ones, he added.
To encourage electric vehicle adoption, YGT recognises that charging infrastructure has to expand in tandem.
Under its chargEV business, the company is building a charging infrastructure network between Malaysia and Singapore. It already has over 400 charging points in Malaysia, and 10 in Singapore.
YGT is focused on growing its charging network across the Causeway. In October last year, it signed a partnership agreement with Singapore charge-point operator ComfortDelGro Engie to offer both Singapore and Malaysia motorists access to over 1,000 charge points.
The charging point business is a challenging one, Barclay acknowledges, and growing at the right pace will be critical.
“For people to buy EVs, they need to have a good charging network. But for us to have a business case to roll out enough charging points, we need enough people with electric cars to come and use them. So it’s a question of scaling it fast enough, but not too fast compared to the fleet size,” he said.
The next frontier
YGT is also keeping an eye out for the next big breakthrough in green mobility.
Autonomous vehicles are one possibility. YGT last year invested in Zeabuz, a Norway-based startup focused on autonomous vessels. Prior to this deal, YGT joined SMRT Ventures to co-invest in autonomous vehicle tech startup MooVita.
With a foothold in both the land and sea space, could the skies be next?
Barclay played down the possibility of a flyEV business. “There’s so many players and it’s such a highly regulated environment, I think we’ll leave that one to other people.”
Nevertheless, he emphasised his belief that “everything” in the transport world, including aviation, is eventually going electric. “It’s just (about) how soon it’s happening.”
UOB supports green ambitions with advice and financing
FINANCING is a key enabler for the electric vehicle industry to scale up. UOB’s U-Drive programme provides sustainable financing solutions for the ecosystem’s players, helping meet this important need.
UOB is currently working with Yinson GreenTech (YGT) on financing the capital expenditure of chargEV, the company’s EV charging infrastructure business. The bank has also endorsed a collaboration agreement to onboard chargEV as its charging infrastructure partner for U-Drive Malaysia.
Separately, UOB is also working with YGT to finance the working capital and capital expenditure requirements of the company’s electric vehicle leasing business drivEV.
Chan Wan Yin, chief financial officer of YGT, cites UOB as a critical source of support. For instance, the bank had provided a green loan for YGT’s project to supply 143 electric commercial vans to postal service Pos Malaysia.
“Although we are part of a larger group that is Bursa-listed, we are essentially still a startup… (For) startups, it’s not easy to raise debt and get financing. UOB has been one of our big supporters from a very early stage,” she said.
UOB also helps companies navigate sustainability through its Sustainability Compass Forum – a one-stop event for SMEs to learn about green trends and regulations, and to network.
Last year’s edition of the forum featured masterclasses covering six sectors: construction and infrastructure; consumer goods; logistics; energy and chemicals; healthcare and technology; and media and telecommunications.
“Each SME participant also received a UOB Sustainability Compass Playbook, exclusively designed to help them create clear action plans to operationalise sustainability practices,” said Eric Lian, UOB’s head of group commercial banking.
Understanding sustainability is increasingly important for companies, in light of impending regulations, such as the mandatory reporting of climate-related disclosures and increase in carbon taxes.
This year’s edition of the UOB Sustainability Compass Forum, which takes place on Jul 2, will address concerns that SMEs have, and provide practical insights and guidance to meet their sustainability objectives.
The event will feature a fireside chat with Lee Chuan Teck, executive chairman of Enterprise Singapore, as well as masterclasses on measuring, managing and reporting sustainability metrics; and maximising cost savings with energy efficiency.
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