US startup pens $160M deal for deployment of hybrid-electric tugboats

September 11, 2025, by Sara Kosmajac

Los Angeles-headquartered electric boat manufacturing startup Arc has inked a $160 million contract with compatriot marine company Curtin Maritime for eight hybrid-electric ship assist tugboats.

As disclosed, the tug octet—part of a privately funded project—is set to be constructed in collaboration with the Snow & Co shipyard. The units, which will reportedly see the “largest commercial deployment” of electric workboats in the region’s marine industry history, are planned to be delivered by the end of 2027.

Designed in close collaboration with Curtin Maritime, each of the tugboats will be powered by Arc’s vertically integrated electric powertrains, delivering what is estimated to be over 4,000 horsepower and backed by a 6 megawatt-hour battery buffer. The powertrains are expected to minimize operating costs and reduce heavy maintenance burdens.

According to Arc, once completed and delivered, the vessels are expected to improve capability, efficiency, and reliability in United States ports.

“Tugboats are the workhorses of our ports. They’re critical for our national supply chains and defense logistics, yet are largely powered by outdated, unreliable, and harmful diesel engines,” Mitch Lee, Chief Executive Officer of Arc, shared.

Lee further emphasized that, because of this, the deployment of the hybrid-electric ships would be a “huge step” toward breathing new life into tug services across American ports.

As noted, Arc’s contract with Curtin Maritime builds on the company’s experience in the recreational sector with high-performance boats like the Arc One, Arc Sport, and Arc Coast, all of which have played an important part in the company’s mission of powering everything on the water with clean energy sources.

The Port of Los Angeles, said to be the busiest port in the country, is planning to introduce its ‘first’ truckable electric tugboat in the next couple of years. Behind the project are Arc and a West Coast shipyard, Diversified Marine, which will endeavor to jointly push forward the port’s clean air initiatives and zero-emission goals.

Unveiled in mid-April this year, the project will see the fitting of Arc’s electric powertrain and software, a dual-motor drivetrain and large lithium-ion batteries on the vessel in order to provide high torque for short-range missions.

This effort, which is reportedly supported by government funding for zero-emission port equipment, is considered a ‘big’ leap forward in electrifying the marine industry and slashing the environmental impact of the busy port complex.

Once it is put into service, the 7.9-meter-long unit is anticipated to deliver operators up to 50% savings in comparison to conventional, diesel vessels.

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