A Spark While Eating Ice Cream: Developing a Flying Boat... "Ready to Launch on the Han River" [Corporate Research Institute]

Commercialized as Public Transportation in Sweden
Founder is a Former Chemical Company CEO
Idea Sparked While Eating Ice Cream on Vacation

Editor's NoteSouth Korea ranks second in the world for corporate research and development (R&D) spending (2022) and fourth for patent applications in the United States (2020). However, the annual average growth rate of corporate productivity dropped significantly from 6.1% between 2001 and 2010 to 0.5% between 2011 and 2020. This is because productivity growth among 'innovative companies'?those actively engaged in innovation activities?has slowed. Without change, companies will be shunned by the market. To help the industry revive its innovation DNA, we examine innovation cases pioneered by leading global companies. Innovative companies will be the driving force to revitalize Korea's stagnant economic growth rate.

The Swedish startup Candela, which developed a vessel that flies over water using electricity and succeeded in commercializing it as public transportation for the first time, is drawing attention. Gustaf Hasselskog, founder and CEO of Candela, came up with the idea for a flying boat while eating ice cream with his family during a vacation, back when he was serving as CEO of a chemical company.

Quitting as a Chemical Company CEO to Develop a Flying Boat

To celebrate becoming CEO of a chemical company, Hasselskog purchased an American-made motorboat. In the hot summer of 2014, he was spending time with his family at a vacation home on a small island. They frequently took the boat with his children to an ice cream shop on a nearby island. At the end of the summer, when he calculated the costs, he discovered that the motorboat used during the vacation consumed 15 times more fuel per kilometer than the family car.

As an engineering graduate, Hasselskog was shocked. He began to consider the boat’s energy efficiency. His thought process was as follows: 1) Motorboats are extremely inefficient at converting energy into forward motion. 2) Most of the energy is used to create large waves behind the boat. 3) To make a faster boat, energy consumption caused by water resistance must be drastically reduced. 4) The only way to do this is to lift the boat out of the water.

On May 28, Gustaf Hasselskog, founder of Candela, who successfully crossed North Africa from Spain aboard the company's electric boat C-8, is giving a commemorative interview upon arrival in North Africa. Provided by Candela

The answer he found was the hydrofoil, which attaches airplane-like wings beneath the hull to lift the vessel above the water and reduce drag. The hydrofoil method was first invented in 1898 in the area near Lake Maggiore, close to Milan, Italy. However, when applied to boats, it had less durability and propulsion than motor-powered vessels, so it was mainly used in calm coastal or river waters.

Hasselskog decided to build a modern electric hydrofoil boat. He envisioned a vessel different from existing hydrofoil boats, one that could handle high waves and rough waters. He chose rechargeable electric batteries as the fuel source. As soon as the summer of 2014 ended, Hasselskog stepped down as CEO and founded the startup Candela.

To assemble the best team, he recruited experts from Airbus Helicopters (formerly Eurocopter) and Swedish carmaker Saab. He also scouted hydrodynamics expert Michel Kermarec, who had designed boats for the America's Cup international yacht race for 29 years.

Commercialized as Public Transportation in Sweden... "A Structure That Can Operate on the Han River"

In 2019, the first hydrofoil electric boat, the C-7, was finally born. The core of the hydrofoil boat, the wings, adjust their position and angle 100 times per second beneath the boat to maintain balance. This is similar to how your hand reflexively moves to prevent dropping a smartphone. The C-7, with a 42 kW battery, can carry up to 700 kg, including the driver.

On May 28, the Candela electric boat C-8, which crossed North Africa from Spain, departed from Sotogrande, Spain, heading to Ceuta in North Africa. Photo by Candela

The upgraded C-8, launched in 2021, is faster and quieter. The C-8 cruises at an average speed of about 25 knots (approximately 46 km/h), which is almost the same as conventional small diesel-powered boats. The differences are that it produces almost no noise even at high speed, has fast battery charging, and offers smooth sailing regardless of weather or wave height. The C-8 is operated with computer control.

The C-8 set a record by crossing from Spain to North Africa in just one hour. In May, it sailed approximately 44 km from Sotogrande, Spain, to Ceuta in North Africa. This proved that intercontinental operation is possible with an electric ferry. After recharging the battery, it returned to the Spanish mainland the same day. The C-8's performance matches the speed of conventional high-speed ferries.

Mikael Malmberg, Head of Communications at Candela, said in an interview with Asia Economy, "This voyage demonstrates that hydrofoil electric boats have reached a sufficient level of technological maturity," adding, "Operating costs can also be drastically reduced compared to conventional vessels."

Candela's third model, the electric ferry P-12 (launched in 2023), has been used since November last year as a commuting option for citizens in Stockholm. This is the world's first case of a hydrofoil ferry powered by electricity being used as public transportation. The commuting time was reduced from one hour to 30 minutes. The fare is the same as other public transportation. Malmberg explained, "Unlike regular boats, where you have to hold on and endure discomfort, you can enjoy the surrounding scenery while commuting, which is a major advantage."

Malmberg also noted that the P-12 could operate on the Han River in Seoul. He said, "It takes one hour to travel from Yeouido to Jamsil by car or subway, but with the Candela ferry, it would take just 18 minutes," adding, "The energy cost is about 282 won per person." He continued, "The initial purchase cost is higher than that of diesel vessels, but since annual operating costs are reduced by 60 to 70 percent, if you operate the ferry for more than 20 to 30 years, you can achieve significant cost savings over the entire lifecycle."

Candela manufactures its boats at its own factory in Stockholm. Of the company's approximately 230 employees, about 100 work at the factory. The C-8 electric boat model can be produced at a rate of one per week. For the P-12 electric ferry, about 20 units can be built annually. Recently, Candela exported electric boats to Saudi Arabia and Switzerland, and also secured a contract to export 11 electric ferries to India. Including the Mumbai order, there are currently 40 to 50 vessels on backorder.