INSIGHTS: Will Watson, Marine Product Manager, Caterpillar

As the maritime industry accelerates its transition toward low- and zero-emission propulsion, the big engine manufacturers – which have spent the last century evolving the efficiency and robustness of its engine line-ups – are today gearing up for a hybrid future, a future that for the next generation still includes traditional marine engines.

But that future engine room is already starting to morph to hybrid, with the inclusion of battery banks to help cut or eliminate emissions in particularly sensitive areas; with the preparation to burn now, or in the future, a long list of potential future fuels. While “decarbonization” is more often than not the headline, trust that fuel efficiency is the payoff vessel owners seek.

It would stand to reason that the big OEMs – with the heft of scale across industries and R&D budgets that can help them look further ahead – are best positioned to benefit, and in the workboat sector there are few better positioned than Caterpillar.

With a global product portfolio spanning marine, land-based, and industrial markets, Caterpillar Marine is tapping into deep R&D investments across sectors to develop flexible propulsion solutions for tugboats, offshore vessels, and ferries. At the heart of this effort is Mass Maritime-graduate Will Watson, Marine Product Manager, Caterpillar, who is helping to steer the company’s focus on hybrid systems, methanol-fueled engines and vessel design flexibility. “There’s probably no time like it in the maritime industry,” he said. “We’re seeing a tremendous openness to exploring new technologies, balanced by uncertainty over which path will ultimately dominate. The one constant is that the conversation is happening across all corners of the industry.”

Hybrid Systems

Caterpillar is actively helping vessel owners evaluate hybrid propulsion systems as a means to reduce emissions and operating costs without abandoning the reliability of internal combustion. “When owners come to us, the first question we ask is: ‘What’s your primary goal?’” Watson explained. “Whether it’s reducing operating costs, hitting emissions targets, or qualifying for a tender, that goal shapes the right solution.”

Hybrid systems—typically comprising traditional diesel engines supplemented with energy storage—can offer measurable benefits in fuel savings and emissions reductions, particularly in workboat applications with variable load profiles. “You’re not necessarily replacing all your engines with batteries,” Watson said. “Instead, you’re sizing the battery system to optimize efficiency for your specific operating profile.”

He added that the payback period often depends on fuel cost savings or regulatory compliance benefits. In emission-restricted zones, hybrid systems may be essential simply to operate. In other cases, operational savings alone justify the investment. “It’s about finding that balance between upfront CapEx and long-term OpEx reduction.”

When owners come to us, the first question we ask is: ‘What’s your primary goal?’ Whether it’s reducing operating costs, hitting emissions targets, or qualifying for a tender, that goal shapes the right solution.”

- Will Watson,
Marine Product Manager, Caterpillar

Methanol: A Viable Option for Workboats

Beyond hybridization, Caterpillar is investing in combustion technologies that can accommodate alternative fuels—particularly methanol. While land-based divisions of the company are exploring hydrogen, Caterpillar Marine sees alcohol-based fuels like methanol as a more practical near-term solution for maritime operators.

“From a handling and storage standpoint, methanol makes a lot of sense,” Watson said. “It’s a liquid fuel, familiar to many ship operators, and it offers a clear emissions advantage.”

Caterpillar’s dual-fuel engine development strategy centers on fuel flexibility. The goal is to allow a vessel operator to start with diesel or HVO, and later transition to methanol without replacing the engine. “We’re designing engines to be agnostic, to evolve with whatever fuel becomes available or economically viable over the life of the vessel.”

Watson stressed the importance of designing vessels now with future fuel flexibility in mind. “Shipowners don’t always know today what fuel will be available at their ports tomorrow. So we work closely with naval architects and owners to design vessels that can be retrofitted or adapted in five, 10 or even 20 years.”

The Damen Tug Project

A high-profile examples of Caterpillar’s alternative fuel initiative is its collaboration with Damen Shipyards to deliver a methanol-powered tug using Caterpillar’s 3500-series dual-fuel engine. “This project illustrates everything we’ve talked about; collaboration, flexibility, and forward-looking design,” Watson said.

The joint development involves shared learning across both companies: engine operation, vessel integration, fuel handling, and real-world performance expectations. “It’s a living test case for how we bring methanol propulsion from the lab to the water,” Watson said. “We’re not just building a one-off. We’re creating a template for future vessels.”

Digitalization, too

Another strategic advantage Caterpillar brings to the maritime sector is its access to a wider industrial ecosystem. Lessons learned from the company’s work in construction, transportation, and energy are feeding directly into marine solutions. “I talk regularly with product managers in other segments,” Watson said. “While we focus on methanol, others are advancing hydrogen or full electric solutions. Those insights help shape our development priorities.”

That cross-sector experience is especially valuable in digitalization, where Caterpillar’s expertise in connected assets and performance monitoring is being applied to maritime operations. “Whether it’s predictive maintenance or energy management, the digital tools we’re developing elsewhere are directly transferrable to vessels,” Watson said.

Looking ahead, Watson urged shipowners and designers to build in flexibility from the outset. Whether planning for batteries, alternative fuels, or future regulations, early-stage decisions will determine whether a vessel can adapt over decades of service.

“Think about battery placement, deck space, tank configuration,” he advised. “If you don’t plan for change now, your vessel could become obsolete faster than you expect.”

With a seemingly dizzying array of choices to make, Watson emphasizes the basics: “There’s no one-size-fits-all solution. But with the right tools, data, and design strategy, we can help owners navigate whatever comes next.”