BC Ferries has pledged to build seven electrically powered ferries at a Canadian shipyard if the government helps with funding.
The move by the Canadian ferry operator is part of a plan to have battery-propelled vessels making up a third of its fleet by converting another six units.
"This is potentially one of the most sweeping carbon-reduction initiatives in the marine industry worldwide," the company said in its proposal to the British Columbia provincial government.
BC Ferries usually builds vessels overseas where it is much cheaper.
The shipowner said it will contribute to the cost of the programme, but added the whole plan is dependent on federal and provincial funding.
The state cash would go towards making up the premiums paid in Canada compared to Asian or European shipyards.
BC Ferries is working with power company BC Hydro on the plan, due to terminals needing to be modified for battery charging, the Vancouver Sun reported.
Conversions and newbuilds
The first phase would see six hybrid diesel-electric Island Class vessels converted to battery only.
The 450-passenger, 50-vehicle ships have been on order at Damen Galati in Romania. Four remain to be delivered.
The remaining seven ships of the 13-vessel target will be built in Canada at a potential cost of CAD 1.04bn ($810m) over five to seven years.
Upgrades of the first nine terminals could cost CAD 150m over two or three years.
BC Ferries believes the plan will help the environment, create jobs and speed up the shipping sector's transition to greener fuels.
The company also has a $70m LNG-powered ropax on order at Remontowa in Poland.
