The Fire Investigator side of me is compelled to advise you to engage a licensed electrician for the task.
Now that I have said that, yes it can be done. You seem to know the difference between “on demand” and “point of use” and that’s half the battle. The other consideration aside from the electrical is the plumbing. You will need to cap the existing hot water supply (red pex) to the kitchen sink, and only feed the point of use water heater with the cold water supply (blue pex) on the input side and then the output can be connected to the sink faucet as usual. If it were me, I would use an inline shutoff valve on the hot water side in the (rare) event that you find yourself without shore power, so you could still use the demand water heater for hot water if needed.
On the electrical side you will likely need a 20 amp dedicated circuit to the point of use water heater. This will require adding a breaker and wiring from the power center to the point of use water heater under the sink
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Rob & Amy
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