Los Angeles-based startup Arc Boats has secured a $160 million order from Curtin Maritime for eight hybrid-electric tugboats, the company announced on Wednesday. The vessels, priced at roughly $20 million each, are expected to enter service at the Port of Los Angeles in 2027. Arc will build the tugs in partnership with Snow & Co. shipyard.
The tugboats are designed to assist large cargo ships in and out of major ports, a role traditionally performed by diesel-powered tugs that produce high levels of black carbon and sulfur oxides. Arc’s hybrid system replaces much of the diesel engine with electric motors powered by a 6MWh battery, while a smaller diesel generator provides backup for longer trips or in areas with limited charging infrastructure.
Arc CEO Mitch Lee highlighted the environmental benefits of the design, noting that conventional tugboats are “some of the worst-polluting vehicles on the planet by linear foot.” He said the hybrid-electric system could significantly reduce emissions and help operators comply with environmental regulations.
The new design also allows for more space on board, which could be used for crew quarters, and improves visibility from the wheelhouse. Lee said the hybrid system makes maintenance simpler and lowers fuel costs, adding that the tugs’ short, regular missions are well-suited to electric propulsion.
While Arc has previously focused on all-electric sport boats, the company plans to expand into commercial maritime operations. Lee emphasized the importance of tugboats in global commerce, saying, “[All of this commercial activity is held together by these tractors in the water that are pushing and pulling these boats into position. And we have the opportunity to go modernize these in a really compelling way.]”