Arc Boats wins $160M deal to build hybrid-electric tugboats for the Port of Los Angeles
If you know Arc Boats, the Los Angeles startup founded in 2021 by former SpaceX engineers, it’s probably because of its sleek, futuristic sport boats. But the company is now steering into heavier waters: tugboats.
On Wednesday, Arc announced its first major commercial contract — a $160 million deal with Curtin Maritime, a tug and barge operator. The agreement covers eight hybrid-electric tugboats, priced at about $20 million each, slated to launch in 2027 around the Port of Los Angeles. The vessels will be built in partnership with Seattle-based shipyard Snow & Co.
Why Tugboats?
These aren’t just any tugboats. They’re ship-assist vessels, the powerful workhorses that guide massive cargo ships into and out of crowded ports like LA.
Arc CEO and co-founder Mitch Lee calls them “torque-generating machines” — but today’s models rely on massive diesel engines that pump out carbon, sulfur oxides, and other pollutants. “They’re some of the worst-polluting vehicles on the planet by linear foot,” Lee said.
By swapping in 6MWh battery packs and electric propulsion systems, Arc’s hybrid tugs will slash emissions while improving air quality for workers and communities near the port. A downsized diesel generator will remain onboard as backup, mainly for recharging during longer missions or when charging infrastructure is limited.
Big Impact for LA
The scale of the deal matters. The Port of Los Angeles only has about 20 ship-assist tugs in operation. Curtin’s order for eight means Arc’s technology could quickly account for nearly half the fleet, giving the project an outsized environmental impact.
Lee also highlighted other advantages:
- Space savings – Electric drivetrains eliminate bulky exhaust stacks and other diesel components. That opens up room for larger crew quarters, especially valuable for tug workers who often live aboard for weeks at a time.
- Improved visibility – Removing smoke stacks clears up sight lines from the wheelhouse.
- Lower maintenance – Fewer moving parts should translate to less downtime.
- Fuel savings – Cutting diesel consumption offers operators compelling cost benefits.
Arc’s Broader Mission
Until now, Arc has been known for its all-electric sport boats like the Arc One, Arc Sport, and Arc Coast. The tug contract marks a turning point, expanding from recreation to the backbone of global trade.
While Lee has spent hours testing Arc’s smaller vessels, he can’t legally pilot the new tugs without special licenses. That hasn’t dampened his enthusiasm. “All this commercial activity is held together by these tractors in the water,” he said. “We have the opportunity to modernize them in a really compelling way.”
Arc’s mission remains bold: to electrify all watercraft. This $160 million contract is both a validation of that vision and a chance to reshape one of the dirtiest corners of maritime commerce.
