U.S. marine electrification company Fleetzero has raised $43 million in Series A funding to expand manufacturing of its hybrid and electric propulsion systems, as it seeks to scale production capacity and support the maritime sector’s shift toward lower-emission vessels.
The funding round was led by Obvious Ventures, with participation from Maersk Growth, 8090 Industries and Breakthrough Energy Ventures, Fleetzero said. The company also announced the opening of a new manufacturing and research facility in Houston, Texas.
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The new site will initially support production capacity of about 300 megawatt-hours per year of marine energy storage and propulsion systems, with plans to expand to roughly 3 gigawatt-hours annually within five years. Fleetzero said the facility will also house research and development operations focused on marine propulsion, robotics and autonomy.
“Houston has the people who know how to build and operate big hardware—ships, rigs, refineries, and power systems,” said Mike Carter, co-founder and chief operating officer of Fleetzero. “We’re pairing that industrial DNA with modern batteries, autonomy, and software to bring back shipbuilding to the U.S.”
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The company’s Leviathan propulsion system is designed to be installed on both newbuild and existing commercial vessels, operating in either hybrid or fully electric configurations. Fleetzero says the system can lower total cost of ownership through reduced fuel consumption and maintenance requirements, while also cutting emissions.
“Hybrid and electric propulsion systems are simply cheaper, safer, and cleaner than traditional systems, and the shift in the industry towards electrification is inevitable,” said Steven Henderson, Fleetzero’s co-founder and chief executive officer.
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Investors said the round reflects growing interest in electrification solutions for shipping as operators face tighter emissions rules and rising fuel costs. “We believe that electrification will be an important part of the mix on our journey to reach net-zero,” said Morten Bo Christiansen, head of energy transition at A.P. Moller-Maersk, whose venture arm participated in the round.