By Carole Dennett
Red Funnel’s tie-up with Artemis Technologies to bring a zero-emission hydrofoiling ferry to the Solent is being promoted as a major green leap forward. But behind the slick marketing and confident claims, questions are being asked about whether the project is necessary, affordable – or even deliverable.
The proposed EF-24 passenger ferry, which would carry 150 passengers using electric hydrofoil technology, does not yet even exist. All of Artemis’ existing vessels have been delayed, the latest being the Orkney project, and the EF-24 pilot vessel between Belfast and Bangor – originally set for 2024 – is now postponed to autumn 2025. Red Funnel’s own target for the Southampton–Cowes service has already slipped from 2025 to “early 2026”. Surely the company would need more time to learn lessons from the ‘pilot project’.
Despite this, a leaked lease proposal from September 2023 shows Red Funnel would commit to paying £1.75 million per year for the first three years, rising to £2.9 million for the following 12. An option to buy the vessel at year three would cost £13.5 million.
Industry experts have raised doubts over the commercial logic of the scheme. Maritime finance professionals say the lease payments would be around twice the cost of a proven Island-built RedJet, which requires no changes to berths or expensive dredging—both of which would allegedly be needed for the aft-loading Artemis vessel.
There are further concerns around the company’s well-documented financial woes. Despite many denials, it is now established that Red Funnel has been seeking a buyer since early 2024, but has yet to secure new investment. Sources say the only agreement signed with Artemis involved only a “nominal deposit” to hold a build slot.
Artemis, meanwhile, is marketing the EF-24 elsewhere, including in Washington, Florida, Puerto Rico, the Orkneys and British Columbia – there would be other buyers if the deal with Red Funnel collapses.
Parliamentary questions tabled by Isle of Wight East MP, Joe Robertson, have revealed that Artemis Technologies received at least £33 million in grants in 2022 and more than £10 million since. Critics argue the Red Funnel ferry is more a vanity project for Red Funnel and a showcase for Artemis’ ambitions than any sort of reliable solution for cross-Solent transport.
The business case is also under scrutiny. Even at the initial £1.75 million lease rate, the vessel would need more than 500 full-capacity sailings a year just to cover that cost – rising to over 850 crossings when the lease increases. These estimates assume all passengers pay the full £22.75 single fare – which of course they don’t. Ferry experts say such consistent capacity is unrealistic outside of peak periods, especially with high-speed passenger numbers still well below 2019 levels, as confirmed in Red Funnel’s long-delayed accounts.
Questions are also being asked about the need for any new ferries at all. The RedJets – built on the Island and still well within their operational lifespan – provide the necessary capacity. Meanwhile, Red Funnel has been holding out a begging bowl to councils and the public to help fund a £250,000 repair bill for the Hythe pontoon. Critics say that raises doubts about the wisdom, let alone the company’s ability, to commit millions to a speculative new service.
IW East MP, Joe Robertson, said: “I am concerned that the Island is being used as a guinea pig to try and prove untested green technology with the real prospect that these battery foiling boats simply won’t work properly. Sea conditions here can be very harsh, 2.5m waves running against the wind mid-Solent are very different to 2.5m waves in the Irish Sea where their small boats have been tested.
“What we need is a robust, tried and tested boat design. If there is money to be saved running battery boats we can be sure it will end up in the pockets of Red Funnel’s shareholders – not ferry users.
“Now that we know the DfT is effectively subsidising cross-Solent ferries, we need to make sure subsidies are spent where they are needed – not on an experimental battery-operated foiling boat which may not work properly, but to help reduce prices for passengers and increase the number of timetabled services.
“In any case, Red Funnel should be starting with replacing their old Raptor class car ferries which are over 30 years old and repeatedly break down. They need to get the basics right.”
With the Artemis lease document promising “public image and reputation” boosts for Red Funnel, many are asking whether this is more about PR than passengers. As the company struggles to restore trust and find a buyer, Islanders may be forgiven for wondering if the new ferry is intended to be a distraction to get positive headlines – rather than any sort of realistic solution to very real problems.
Red Funnel has been approached for a comment.
