A tug escorts a containership at the Port of Los Angeles, California. Photo: Robert V Schwemmer / Shutterstock.com

Stock image: A tug escorts a HMM containership at the Port of Los Angeles, California. Photo: Robert V Schwemmer / Shutterstock.com

Arc and Curtin Maritime Sign $160 Million Deal for Hybrid-Electric Tugboats

Mike Schuler
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September 10, 2025

LOS ANGELES — Arc, the Los Angeles-based electric boat company, has announced a $160 million contract with Curtin Maritime for eight hybrid-electric ship assist tugboats. The deal represents the largest commercial deployment of electric workboats in the U.S. marine industry history and includes the delivery of four tugboats before the end of 2027.

Each vessel will be powered by Arc’s vertically integrated electric powertrains, delivering over 4,000 horsepower and featuring a 6 megawatt-hour battery buffer. The tugboats are being designed collaboratively with Curtin Maritime to ensure they meet real-world performance requirements in demanding port environments.

The project is fully funded by private investment, with no government subsidies, highlighting the business case for hybrid-electric vessels. According to the companies, these modern powertrains will reduce operating costs, lower maintenance requirements, and increase vessel reliability while remaining price-competitive with conventional diesel-powered boats.

“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 They’re critical for our national supply chains and defense logistics, yet are largely powered by outdated, unreliable, and harmful diesel engines,” said Mitch Lee, CEO of Arc. “Our goal is to rebuild the commercial industry around modern, efficient, and reliable hybrid-electric powertrains, and this deal is a huge first step to doing exactly that.”

Martin Curtin, CEO of Curtin Maritime, emphasized the practical benefits of the transition: “We’re focused on innovation that drives real efficiency and cost savings for our operations. These tugs will do exactly that by delivering the power and reliability we need while giving us a smarter, low maintenance fleet.”

Arc, founded in Los Angeles in 2021 by former aerospace and automotive engineers, has previously developed recreational electric boats including the Arc One, Arc Sport, and Arc Coast. The company’s expansion into commercial vessels aligns with its stated mission to “power everything on the water.”

The tugboats will be built in collaboration with Snow & Co shipyard.

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