Finland-based shipbuilder Rauma Marine Constructions (RMC) has signed a letter of intent with Kvarken Link for the construction of a new car and passenger ferry.

Kvarken Link is owned by the city of Umeå and Vaasa.

The proposed vessel will use liquefied natural gas (LNG) as its main source of fuel and aims to connect the Finnish city of Vaasa with the Swedish city of Umeå.

Valued at around €120m, the newly signed deal is expected to be formalised early this year.

Once the deal is finalised, design and construction of the vessel will begin immediately.

RMC CEO Jyrki Heinimaa said: “RMC won the public international tender thanks to our expert knowledge and technology.

“RMC specialises in the design and construction of car and passenger ferries.”

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The ferry will be designed to carry around 800 passengers and will have 1,500 lane metres of space for lorries.

“RMC won the public international tender thanks to our expert knowledge and technology.”

To be powered by a solution that runs on dual fuel and battery sources, the vessel will be designed to conduct environmentally friendly operations.

It will also be developed to use biogas fuel produced in Vaasa.

In September, Danish ferry operator Molslinjen commissioned a car and passenger ferry, M/S Hammershus, which was built by RMC.

Compared to Hammershus, Kvarken Link’s new ferry to be built by RMC will include more cabin space, more restaurant offerings and other features.