Yes they still use fossil fuel but far less of it. You may not be aware that the liner Queen Elizabeth was converted to electrical propulsion around mid life, and the liner QM2 was built with electrical propulsion. Its quite a common feature these days where ships have varying power demands, but not economic for the ships like large containers hips or car transporters that just go A to B at a fixed speed and back again. It enables ships to balance the requirements of hotel load, weapons load and propulsion. It also reduces the number of prime movers required. A Type 22 frigate would have had 2 Tyne GT, and 2 Olympus, or Spey GT for propulsion plus a very complex gearbox, and a number of diesel generators too. The major problems with whole ship integrated electric is that they make engineers redundant 🙂