E&H Marine sits down with René Hansen, CEO of Swedish tech company X Shore, to discuss the firm’s approach to high-end, luxury boating with zero emissions.
Though the electrified marine industry remains in its relative infancy – when compared with the history of maritime navigation, at least – several instigators and developers are already carving out recognizable and significant reputations at the forefront of cutting-edge, zero-emission boating. Even though it’s only nine years old, it’s safe to say that X Shore has firmly established itself as one of those companies. E&H Marine caught up with CEO René Hansen to look back on X Shore’s impressive first few years of operation – not least a recent deal with M Yachts to provide 32 electric boats for the DACH region, with the first deliveries scheduled to take place by the end of 2024 – as well as the company’s longer-term strategy, commitment to sustainability, principal design objectives and plans for the future.
Can you take us back to the start? What market need was X Shore founded to address in 2016?
Konrad Bergström, the founder of X Shore, had a vision to set up a company to combine his love of boating with his passion to protect the oceans. Traditional boating’s environmental impact was clear – fossil-fuel engines generated substantial emissions and noise, harming both the climate and marine life. But the sustainable alternatives were limited, especially if you wanted luxury and high-performance boats. Konrad saw an urgent need for a better way to enjoy the water without damaging it. X Shore was born to deliver 100% electric boats, which promise a clean, quiet and technologically advanced boating experience. X Shore makes a powerful environmental statement and offers consumers an alternative that aligns with their values.
What was the company’s big-picture goal back then?
Our goal was ambitious: to reshape the boating industry into one driven by sustainability and innovation. We envisioned a world where everyone could enjoy the open water without compromising the environment, where boats not only run clean but enhance the experience with technology – like our digital interface and modular design – seamlessly. This also meant committing to high standards in sustainability and innovation while ensuring that performance wasn’t sacrificed in the process.
Where do you think X Shore is right now in terms of that longer-term roadmap?
Today we’re seeing that vision take shape as we’re a leading name in electric boating. X Shore boats are on the water around the world, and we’re setting new standards in sustainable boating. Our Swedish factory exemplifies sustainable manufacturing, and our offerings now include versatile models and modular options for various needs.
“This order deal with M Yachts is our largest yet, marking a defining moment in X Shore’s growth. Securing a 32-boat order for the DACH region signals that we’re gaining significant momentum in marine electrification”
René Hansen, X Shore
On our roadmap, we’re focusing on finetuning our reach, especially as demand grows in Europe and the US. The recent demand surge indicates that people are ready to make this shift, and we’re positioned to lead it.
You have recently announced a significant amount of new funding. What will this money be spent on?
Similar to many companies on the path to profitability, X Shore has conducted a capital raise annually since its inception. Any upcoming capital won’t be earmarked for capital expenditure associated with the development of the factory in Nyköping as has been the case in the previously conducted capital raises. This is because all necessary investments to establish and operate the factory have already been secured. Instead, the funds will be allocated to enhancing our products, refining sales and marketing strategies, and developing new models to facilitate profitable scaling to deliver on the communicated business plan.
How do you ensure that your R&D is targeted in the right areas? How do you choose what to focus on in-house and what systems expertise to access via partnerships with other suppliers?
We ensure R&D is strategically focused on propulsion, battery innovation and sustainable materials. For specialized areas like battery systems, we partner with experts such as Kreisel. This way, we can focus on our strengths while leveraging external expertise where it matters.
We balance in-house innovation with strategic partnerships. Sometimes we seek third-party solutions but find it necessary to develop them ourselves to meet our quality standards. Other times, we start in-house but shift to a partner if their solution matches or exceeds our needs.
Have there been any aspects of X Shore boats where you wanted to use a third party but ended up developing a solution in-house? And vice versa, where initial plans to develop systems were shelved when a viable partner was found?
At X Shore, our approach is dynamic and driven by the pursuit of excellence. There have been instances where we initially sought third-party solutions but ultimately developed them in-house when existing options couldn’t meet our standards for performance, efficiency or sustainability. Conversely, there are times when we’ve identified strong partnerships with external providers that allowed us to leverage their expertise, enabling us to focus on other areas where we can innovate and add the most value.
How do you decide which partners to work with?
We take a technology-agnostic approach, always seeking partners whose solutions best align with our product requirements, market demands and innovation goals. While we value the contributions of our current partners, such as Kreisel, Bosch and other industry names, our focus remains on finding the right fit for each project and continuously exploring new opportunities to advance sustainable and efficient boating technologies.
Are these decisions purely technically based? Or is consideration also given to a partner’s own commitment to sustainability, geographical location and so on?
Beyond technology, we consider factors such as a partner’s environmental commitment and their location to keep supply chains efficient and minimize our carbon footprint. This adds depth to our partnership decisions.
What advantages do new pure-electric companies have over legacy companies who are (slowly) moving toward electrification?
As a pure-electric company, we have no legacy systems or combustion models weighing us down. This freedom enables us to innovate quickly and focus on electric-only advances, giving us a head start in the electrification race.
Do you see a role for new startups as well as existing developers in the medium term?
Both startups and established companies play essential roles. Startups drive innovation while legacy developers provide industry reach and gradual adaptation.
What are the key technological barriers/breakthroughs that will herald the next stage of X Shore development?
Battery density, motor efficiency, sustainable materials and versatile vessel designs are our main targets. Breakthroughs in these areas will drive the next stage of electric boating, making it more accessible and effective.
How important is the relationship with regulators and certification agencies in pushing the whole industry toward decarbonization?
Working closely with regulators is essential to accelerating industry-wide decarbonization. We actively engage in regulatory dialogs to ensure policies support and enable the shift to electric boating, helping set standards that encourage sustainable solutions across the marine sector.
What are the next steps for X Shore in terms of manufacturing infrastructure? How long will your Swedish facility provide sufficient capacity, and are there plans for expansion or new sites?
Our Swedish factory is a state-of-the-art facility with the capacity to produce up to 400 boats per shift annually. Right now, our focus is on optimizing processes and maximizing efficiency within this facility to ensure we meet demand while maintaining our high standards of quality and sustainability. As the electric boating industry evolves, we’ll continue to evaluate how best to scale in the future.
What markets would be important for any expansion strategies?
Europe remains an important market for us. The US and Asia present significant opportunities as electrification becomes a global movement – a transformative shift in boating from traditional combustion engines to clean, electric propulsion. We’re actively evaluating these regions for future growth.
What does the recent deal with M Yachts say about the status that X Shore has achieved in the marine electrification movement?
This order deal with M Yachts is our largest yet, marking a defining moment in X Shore’s growth. Securing a 32-boat order for the DACH region signals that we’re gaining significant momentum in marine electrification. Germany, Austria and Switzerland are key markets due to their eco-conscious boating policies and bans on combustion engines in lakes, making this partnership vital for building a strong foothold in one of the world’s most promising regions for electric boating. Securing M Yachts as a partner signifies that we’ve reached a new phase, where we’re recognized as a leader in marine electrification, with the capacity to fulfill significant commercial orders that support large-scale, regional adoption of electric boats.
If we were to sit down 10 years from now, what would you like to be telling us about how the rest of the 2020s and early 2030s panned out for X Shore?
Looking ahead to the next decade, I envision X Shore to be a big player in the electric, zero-emission boating industry. We will be driving the industry’s transformation from combustion to clean, sustainable power. By then, we aim to have expanded our product line, redefined the boundaries of innovation and made electric boating the standard across all sectors. Our commitment to being one with nature will be evident in every aspect of our work. X Shore will be a true catalyst, inspiring others to join us in shaping a more sustainable future on the water.
This article was originally published in the January 2024 issue of Electric and Hybrid Marine Technology. To view the magazine in full, click here.
