The Switch

Switching it up.

Authors

Jesper Berg

Jesper Berg

Sofia Ala

Sofia Ala

Eva Hällsten

Eva Hällsten

Philip McCoy

Philip McCoy

School

Hanken School of Economics

Hanken School of Economics

Professor

Martin Fougere

Martin Fougere

Global Goals

7. Affordable and Clean Energy 12. Responsible Consumption and Production 13. Climate Action 14. Life Below Water

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Summary

A Permanent Magnet Machine (PMM) is a form of sustainable electric generator that uses the principle of magnetic induction to create an electromotive force or electricity. Its principal use was aimed towards wind turbine manufacturers however has since been aimed and implemented within the marine and shipping industries.

Innovation

This innovation eliminates the need for energy in creating electromagnets used in standard generators, allowing for clean electricity production. It contributes to SDGs 7, 12, 13, and 14 by reducing fossil fuel consumption, lowering marine pollution as ships require less fuel and making renewable sources of energy cleaner.

The Switch have created the Permanent Magnet Machine (PMM) to target SDG 13, climate control, by creating a generator that consumes less fuel reducing transportation emissions which account for 25% of global emissions (U.S. Energy Information Administration, 2016). They are designed for large maritime vessels currently in service and those being manufactured. The generator can be adapted to fit with current engines and used to build entire electric engines for boats. The PMM can be compared to hybrid and electric car engines/batteries with boats becoming hybrids and full electric.

The PMM was first commissioned for development eight years ago and has been advanced year on year to become more efficient and economic. With the technology being relatively new, not many seafaring vessels have been retrofitted with the innovation, however slowly as more players saturate the market the technology is being more widely used with a new Helsinki to Stockholm ship being fully electric using this innovation. The Switch have a factory in Norway where they build the PMM’s and work alongside other ship builders to fit these to vessels. The PMM uses two magnets that rotate alongside the rotor shaft which generates a DC current as the magnetic field moves consequently generating an electricity. 


The Switch’s innovations specific solution for the SDG’s is to tackle climate change. Teemu Heikkilä, the product line director, highlighted that transportation emissions account for nearly a quarter of all global carbon emissions. Within this quarter, maritime emissions account for 5% of global emissions. The PMM acts as a zero fossil fuel way of generating energy using the rotary shaft, thereby reducing a vessels carbon emission as they no longer need to use fuel to generate electricity for the ship. Through collaboration with ship builders and other start-ups they are able to implement this innovation to ships already in service, vastly reducing the carbon emissions in the maritime industry. They are also responsible for the first fully electric cruise ship between Sweden and Finland, proving to the industry that fully electric ships work and are the next step towards achieving SDG 13.


Switching it up.

Inspiration

When the company was founded in 2006, they were for many years mainly a wind power company, selling PM generators for large wind turbine suppliers. However, that business started to shift to vertical integration in early 2010's, meaning that wind turbine suppliers started to make the most critical components (such as the generator or the frequency converter) in-house, instead of buying them from outside companies like The Switch. Then the company started to think that they need to start finding some other applications than wind turbines to survive. Then they invented the shaft generator application and thought that the PM machine would be a perfect fit for that, instead of conventional electric machine types, which was used in shaft generator systems back then. This has been a great success for The Switch.

– We have sold over 350 pieces of these MW class shaft generators, and are by far the market leader, even though we started only 10 years ago, Teemu Heikkilä says.


Overall impact

In short term, the products help ship operators to be able to operate now that IMO has set strict emissions limits for vessels. If the vessels do not comply with those, they might not be able operate in commercial business, or at least would face huge penalties. This allows for ships to be readily equipped with engines that comply with the new regulations whilst also being adaptable enough to continually meet the strict regulations set by the IMO.

In the longer term, The Switch’s products help vessel operators to meet this goal of net-zero emissions in around 2050. With their first fully electric passenger ship set to be ready for its maiden voyage in the next year, this will set a benchmark for all new maritime vessels. This benchmark will push cargo, and cruise companies to meet the UN’s net-zero goal by 2050 as a successful first voyage proves the technology works. The other long-term effect is that once the first fully electric ship works, greater interest will be invested into PMM’s and accelerate the advancements in the technology making it cheaper and more efficient to build and implement. This necessarily will lead to greater numbers of ships with fully electric capabilities vastly reducing CO2 emissions. Whilst there is a lack of evidence towards the long-term effects due to how new the technology is, the short-term effects are already being realised with The Switch being granted a contract to build a fully electric engine using a PMM.


Business benefit

Since The Switch is a small company compared to many of their competitors, such as ABB, Siemens or General Electric, continuous innovation is the only way for them to survive. While these big companies often only want to sell their standard product without any modifications, The Switch have taken the opposite view. All their products have initially been developed together with the customer, to have fully optimized systems. By creating innovations in customer projects, the company is taking bigger risks, but so far this has been paid off for the company. It needs to be said though, that the company's risk-taking appetite has been reduced from earlier times, when they could easily jump into any new application or project that the customer asked for. Now they have more matured products, which are modified in different projects with as small changes as possible. Of course, if there would be a completely new application with clear business cases behind, they would probably take the risk and develop it.

Social and environmental benefit

This innovation, the development of permanent magnet machines (PMMs) for ships, brings benefits to both society and the environment by saving energy and cutting greenhouse gas emissions. Unlike traditional electric machines, PMMs use permanent magnets to create the necessary magnetic field, which means they don't waste energy and are much more efficient. This leads to major fuel savings and reduces the need for diesel engines on large ships. For example, a typical LNG (liquefied natural gas) carrier using PMM technology can produce 5,000 tons less CO2 over its lifetime, helping fight climate change.

Additionally, this technology supports the shipping industry's goal of reaching net-zero emissions by 2050, a target set by the International Maritime Organization (IMO). By lowering fuel use, PMMs help ships meet strict emission rules and operate more sustainably in the long run. This innovation makes marine transport more efficient, reduces fuel costs, and lessens its environmental impact. The company also works closely with, for example Lappeenranta University of Technology, and other research partners to keep improving this technology, making PMMs a key part of building a cleaner and more sustainable future.


Interviews

Teemu Heikkilä, Product Line Director, High-Power Converters

Jussi Puranen, Product Line Director, Electric Machines

Business information

The Switch

The Switch

Helsinki, FI
Business Website: https://theswitch.com/marine/
Year Founded: 2006
Number of Employees: 11 to 50

The Switch is a Finnish company whose mission is to electrify the world with game-changing green technologies using electric generators and vision, they aim to  accelerate the switch toward net zero emissions in marine, wind and industrial applications. Founded in 2006, the company focused on wind power, but shifted its focus to marine technology as markets changed and interest in electrifying marine vessels grew.

In 2022 the company became the leading PM shaft generator supplier for marine vessels.