By Kim Richters

ABB Ltd. said Thursday that it has been chosen by shipbuilding company Vigor Fab LLC to provide ferries with hybrid-electric propulsion and energy-storage systems.

The Swiss engineering company will equip the newest additions to the Washington State Ferry fleet with its Onboard DC Grid power distribution system and drive technology.

"The new vessels will be able to fully operate on battery power and will have the capability to revert to hybrid mode, if required," the company said.

It didn't comment on the financial terms of the deal.

Write to Kim Richters at kim.richters@wsj.com