The former SpaceX-led startup will deliver eight hybrid-electric tugboats to Curtin Maritime, aiming to reduce emissions and transform port operations by 2027.
Arc’s First Major Contract Goes Beyond Sport Boats
Arc, the Los Angeles-based electric boat startup founded by ex-SpaceX engineers, just inked its first major commercial deal — a $160 million contract with Curtin Maritime to build eight hybrid-electric tugboats. The vessels are set to enter service at the Port of Los Angeles by 2027.
- This marks a strategic expansion beyond Arc’s sleek recreational boats into industrial maritime operations.
- Each tugboat is valued at approximately $20 million, and will be co-produced with shipyard partner Snow & Co.
Why Tugboats Matter More Than You Think
The tugs being built are “ship-assist” tugboats — powerful, compact workhorses that guide massive cargo ships in and out of busy ports.
- These are high-torque vessels, traditionally powered by diesel engines that emit significant levels of black carbon and sulfur oxides.
- Arc CEO Mitch Lee described them as some of the “worst-polluting vehicles by linear foot”, with major environmental and health implications for port workers.
By switching to a hybrid-electric system, Arc’s tugboats promise to:
- Slash emissions
- Improve crew safety and comfort
- Help operators comply with tightening environmental regulations
How the Hybrid-Electric System Works
Arc’s tugs will feature a 6 MWh battery pack, powering 4,000+ horsepower electric motors for most operations.
- A compact diesel generator will act as a backup, mainly for recharging batteries on longer journeys or in areas with limited charging infrastructure.
- This system preserves the reliability tug operators require while reducing fuel dependency.
Benefits over traditional tugs include:
- Lower fuel costs
- Simplified maintenance
- Better uptime
- Reduced vibration and noise pollution
Design Gains: More Space, Better Visibility
The switch from bulky diesel engines and exhaust systems to electric drivetrains unlocks extra interior space on board.
- Lee hinted that the space could be used for larger crew quarters, especially since tug operators often live aboard for weeks at a time.
- Eliminating smokestacks also improves visibility in the wheelhouse, enhancing safety and navigation.
Though details remain proprietary, Arc sees this spatial efficiency as a key value proposition for long-term tug operations.
A Green Revolution in Port Infrastructure?
Despite this being just an eight-vessel order, the impact is outsized.
- The Port of Los Angeles has roughly 20 tugs of this type in operation, meaning Arc’s deal could cut emissions from nearly half the local fleet.
- Lee believes this signals a broader shift in shipbuilding, where commercial maritime — not just defense — becomes a hotbed for green innovation.
Still Early, But the Future Looks Electric
Though Arc’s sport boats have garnered celebrity backing (including Kevin Durant), this new direction brings real-world commercial utility to the forefront.
- Unlike Arc’s personal watercraft, these industrial tugs require certified operators, meaning Lee himself can’t take them for a spin.
- But the long-term goal is clear: modernize the tugboat industry and set a precedent for electrifying maritime transport.
As ports face increasing pressure to reduce emissions, hybrid-electric tugboats could become an essential piece of the global logistics puzzle.
