Sweden’s Rederi AB Gotland has taken another step towards zero-emissions shipping in a deal with Australian shipbuilder Austal.

The two companies have agreed a deal to design the Gotland Horizon X, a 130-metre catamaran that will run on fossil-free fuels such as hydrogen, methanol, e-methanol or biogas.

The high-speed ferry will be used between the Swedish mainland and the island of Gotland.

The vessel will transport 1,650 passengers and 450 vehicles at speeds up to 35 knots.

Austal chief executive Paddy Gregg said: “This agreement with the Gotland Company confirms Austal is ready to finalise the design, ready for construction, of a new ... catamaran that is yet another pathway forward to net-zero emissions.”

“Austal has developed vessel designs optimised for various fuel and propulsion technologies, including hydrogen and electricity, that offer a real choice to operators of high-speed craft,” he said.

Gotland chief executive Hakan Johansson called the agreement an important step in the company’s climate journey.

“The vessel will be a very good addition to the traffic between the Swedish mainland and Gotland,” Johansson said. “She will be used foremost during the summer months and make the trip to and from Gotland in under three hours.”

He promised competitive prices for passengers, without burdening the climate or environment.

“We will develop a number of features with the goal to minimise the energy demand and ensure maximum efficiency; an optimal hull design, minimise the weight, optimise the consumed energy on board,” Johannson said.

The aim is to have at least one new ship in operation by 2030.

Gotland has raised money for the project by selling its last tankers.

The owner confirmed the sale of the 49,600-dwt MR vessels Wisby Atlantic and 49,700-dwt Wisby Pacific (both built 2017) for a combined $85m, in a deal first reported by TradeWinds.

Gotland had a 50% stake in the ships, with compatriot Wisby Tankers having the other half.