FERGUSON’S shipyard has secured £8m of funding to build the world’s first hydrogen powered ferry.

Owner Jim McColl today announced that the company has successfully gained funding from the European Union to construct the sea-going car and passenger vessel.

The HySeas III development is expected to cost around €12.6m — just over £11m — of which €9.3m has been awarded by a research and innovation fund set up by the EU.

The vessel’s fuel will be produced from renewable electricity and is a major step towards entirely emissions-free marine transport.

Mr McColl said: “Ferguson’s was the last full-service commercial shipyard on in the River Clyde.

“Since taking over in 2014, we have invested £25m to bring the yard up to the world-class standards with a new, skilled workforce, that has provided the confidence in leading this hugely important, ground-breaking project.”

Mr McColl’s Clyde Blowers Capital firm, which rescued Ferguson’s from administration four years ago, successfully led a European consortium for the funding.

Also involved in the project are the University of St Andrews, Orkney Islands Council and marine and aerospace companies from Norway, Denmark, France and Belgium.

Gerry Marshall, chief executive of Ferguson Marine, said: “We now have one of the most innovative and competitive shipyards in Europe which is capable of delivering ground-breaking projects for Inverclyde, Scotland and beyond.

“HySeas III is a living example of how it can be possible to lead the world in marine technology.”

Testing will now be carried out before construction of the vessel begins.

Once completed, the ferry is planned to operate in and around Orkney.

Chris Dunn, the Port shipyard’s chief naval architect, said: “Over recent years, Ferguson Marine has been at the global forefront of green marine propulsion technology development.

“This exciting project is yet another positive step on that journey and puts us firmly on track to deliver the world’s first zero emission, hydrogen fuel cell powered commercial ferry in 2020.”

The hydrogen ferry will be another world exclusive for the yard following the launch of the first battery hybrid vessel, MV Hallaig, in 2012 and the dual-fuel Glen Sannox — a first for the UK — in 2017.