Ferry operator Boreal Sjø and Wärtsilä Ship Design will work together to develop a hybrid hydrogen-electric ferry and a fully electric ferry.
Part of the Norwegian government's plan to be the first country to own a hydrogen-powered ferry, the firms are finalising their final design concept by August.
Boreal said the hybrid ferry would be powered by 50 per cent hydrogen and be the first hydrogen vessel of its size in commercial operation.
The units are scheduled to be completed in 2021.
They are scheduled to operate on the Hjelmeland-Skipavik-Nesvik route in Norway in 2021.