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OCTOBER 5, 2022
Vision Marine Technologies (VMAR-NASDAQ) continues to be at the forefront of the global electric boating industry’s transition to decarbonization by providing an eco-friendly alternative to ICE propulsion systems via its E-Motion™ 180E (180 HP) fully electric outboard motor and associated powertrain system. This is presently the only high performance zero emission electric motor technology available for scaled commercial production.
As announced in September 2022, The Limestone Boat Company (BOAT-TSXV) confirmed its first purchase order of 25 E-Motion™ powertrain systems, which will be integrated onto its Aquasport 2100CC center console model. Limestone targets initial deliveries to commence by Q4 2023. This important inflection point represents Vision Marine’s first purchase order, and enormous additional validation for our innovative E-Motion™ technology. Furthermore, it foretells the emergence of an historic shift occurring within the traditional boating industry, as the new Aquasport will be an early mover to market.
Limestone is one of many OEMs that have made a strong commitment to expanding its efforts towards developing a future line of electric zero emission models. It is important to note that most of these OEM mandates will likely see these companies as customers of Vision Marine, as opposed to competitors.
In addition to Limestone, Vision Marine recently announced its groundbreaking partnership with Groupe Beneteau, in which Vision Marine will assist in expanding Beneteau’s EV leading footprint by integrating the E-Motion™ onto various models across Group Beneteau’s brand portfolio. The first model to market will be the sporty and elegant 22” Four Winns H2E runabout powerboat, Beneteau is expected to see commenced deliveries by the end of Q2 2023. This could be the first fully electric, mass produced high performance powerboat to ever hit the consumer market.
Beneteau is one of the boating industry’s global market leaders and innovators for over 130 years, producing approximately 10,000 boats annually. The company’s commitment to expanding its electric fleet speaks volumes to the zero emissions movement occurring within the traditional boating industry worldwide. While Benteau maintains a strong global presence, a large percentage of its business is in Europe, with the main production facility and five factories located in France.
Europe is further along than North America in terms of electric transition in general, due to numerous federal and municipal mandates in favor of a move towards global zero emissions initiatives. This bodes extremely well for Vision Marine and Beneteau. Many European countries have already set a precedent for the future. In 2020, Amsterdam announced it would be banning diesel engines from the city’s ancient canals by 2025. Amsterdam’s canal boats are the city’s most popular tourist attraction and are used for up to 14 hours per day. More than 300 convey millions of passengers annually throughout the city’s waterways.
Venice, Italy has also begun restricting fossil fuel powered vessels on its waterways, as Italy has begun expanding its adoption of electric transition. Lake Como, a treasured wealthy tourist’s haven located in northern Italy known for its gasoline engine powered wooden boat tours, held its 2nd annual electric boat day in September 2022. The event was sponsored by BMW and hosted by the iconic 5-star luxury hotel Villa d’Este. The conference was attended by municipal authorities, local and national policy makers, and boating industry leaders in order to discuss the future of electric boating and e-mobility.
Advancements made by the electric boat industry is certainly not surprising, the lack of tax incentives in the United States notwithstanding. However, as the eco-friendly movement has become more widespread and focused on sustainable transportation solutions, various legislation has been proposed. Fueling America’s Security and Transportation Act of 2021 (“FAST Electricity Act”) is presently being proposed on Capitol Hill. The act proposes new federal tax incentives designed to accelerate the manufacturing and adoption of all types of electric transportation, including recreational boats, ships, planes, and even industrial equipment such as forklifts and tractors.
Presently, there are tax incentives in place for electric cars, trucks, and buses. It is likely inevitable that the United States is not too far away from passing such incentives, as the $50 billion marine industry continues to expand its zero emissions goals. On numerous occasions, Elon Musk has publicly stated how important tax credits were to sustaining Tesla prior to actual initial production of automobiles. Such consumer initiatives would be a powerful incentive and would go a long way in reducing waterway pollution and enhancing a domestic carbon footprint.
Many forward thinking OEMs, such as Groupe Beneteau, have begun embracing electrification as inevitable. Brunswick Corporation, the largest global boat manufacturer, and owner of many large recognizable brands such as Mercury Marine, Boston Whaler, and Sea Ray (to name just a few), continues to expand its move toward zero emission. In August 2022, Brunswick Chief Sustainability Officer Jennifer Koenig stated to BoatingIndustry.com, “Electrification is strategically important to Brunswick and represents the next step forward in our evolution in the marine industry.” The company’s subsidiary, Mercury Marine, has designed a low voltage, low horsepower electric trolling motor for select models. However this outboard does not offer high performance capability.
In fact, many OEMs have developed their own respective electric outboard technologies, but they have all been similarly low performance models. Vision Marine’s management firmly believes that its E-Motion™ propulsion system is currently the singular high performance electric outboard motor and powertrain system poised for mass commercial production providing the requisite power in order to achieve the speed and torque necessary to enable the vessel to carry out full functionalities.
Vision Marine is currently in conversation with numerous major OEMs, and continues to spearhead the recreational boating industry’s shift into clean technology.
