Australian shipbuilder Austal Limited has begun construction of a 130-meter high-speed ferry for Sweden’s Gotlandsbolaget, marking a milestone project for its shipyard in Balamban, Cebu.

In a social media post, Austal said a plate-cutting ceremony was held on 5 February 2026 at its Philippine facility, formally launching work on the vessel named “Horizon X.” The ferry is described as hydrogen-ready and is the largest ship ever contracted to the company, as well as the biggest to be built at Austal Philippines.

Senior executives from both firms attended the ceremony, including Austal chief executive officer Paddy Gregg and Gotlandsbolaget chief executive officer Björn Nilsson.

Gregg said the contract reflects sustained confidence in Austal’s technical capabilities and in the expertise of its Cebu-based workforce.

“We are delighted to be building Horizon X, a world-leading hydrogen-ready high-speed ferry — and the largest we have ever built — at Austal Philippines,” Gregg said. “It represents the first major step in bringing this exciting new vessel to life for Gotlandsbolaget.”

The Horizon X ferry is designed to carry up to 1,500 passengers and 400 vehicles and cargo. It will operate between mainland Sweden and the island of Gotland and is scheduled for delivery by mid-2028. Once deployed, it is expected to reduce travel times while supporting the operator’s long-term climate-neutral goals.

The vessel will feature a hydrogen-ready, multi-fuel propulsion platform using a combined-cycle system that integrates gas and steam turbines, partly powered by waste heat recovery. The design aims to improve fuel efficiency and lower emissions as the global shipping industry shifts toward cleaner technologies.

“There is no single solution that fits every operator or route,” Gregg said, noting that meaningful decarbonization in commercial shipping will require flexible, technology-agnostic solutions as alternative fuels and infrastructure mature. “Horizon X has been designed with that flexibility at its core.”

Construction will also use lightweight “green aluminium,” produced through energy-efficient processes to reduce embodied carbon, aligning the vessel with stricter environmental standards in European markets.

Since 2012, Austal Philippines has delivered more than 20 vessels for international clients, strengthening Balamban’s reputation as a key commercial shipbuilding hub. The Horizon X contract is expected to sustain high-value manufacturing activity in Cebu through at least 2028 and could position local shipyards for further opportunities in the growing market for low-emission and hydrogen-capable vessels.