If you’re familiar with Arc Boats, a Los Angeles-based startup established in 2021 by ex-SpaceX staff, it’s probably because of their stylish sport boats. However, the company has also been making strides into the more utilitarian sector of tugboats, and has now secured its first major contract valued at $160 million.
On Wednesday, the company revealed it had inked a deal of that magnitude with Curtin Maritime, a firm specializing in tug and barge operations. The upcoming hybrid-electric tugboats are slated to begin service in the waters near the Port of Los Angeles in 2027. Curtin placed an order for eight tugs — each costing around $20 million — and Arc will partner with Snow & Co. shipyard for their construction.
To be more precise, these are ship-assist tugs, which help maneuver massive cargo vessels as they enter and exit major ports, such as Los Angeles.
Arc’s CEO and co-founder Mitch Lee shared with TechCrunch that these tugboats are essentially “torque generating machines, which is really cool.” However, the conventional models rely on huge diesel engines that “spew black carbon, [and] spew sulfur oxides” into the air, harming both the environment and the health of the crews on board.
According to Lee, these tugs are among the worst vehicles worldwide when it comes to pollution per foot. By replacing most of the diesel engines with batteries and electric motors — details on the hybrid system to come — Arc aims to help tug operators drastically cut emissions. This will make it easier for them to meet environmental standards and contribute to cleaner air.
Lee believes the results will be significant. While the Curtin order is for just eight tugs, there are only about 20 of these vessels operating at the LA port in total, so this single contract could have a substantial impact on reducing emissions.
Switching from diesel engines to electric propulsion also frees up space, Lee explained. Much like electric passenger cars offer more legroom and storage due to their streamlined drivetrains, Arc’s hybrid tugs eliminate bulky features like exhaust stacks, which typically occupy a lot of space.
Lee did not disclose exactly how that extra space will be utilized, noting it could involve proprietary strategies. Still, he hinted at the possibility of expanded crew quarters, which is valuable since tug workers often stay aboard for up to two weeks at a time. Eliminating the smokestacks also improves visibility for workers in the wheelhouse — the area where the vessel is controlled.
How it works
Image: Arc
Arc’s previous boats have all been fully electric, and the company’s ambitious vision is to electrify all types of watercraft. The new tugs will primarily use electric propulsion, Lee said, with motors delivering over 4,000 horsepower powered by an enormous 6MWh battery. There is also a diesel generator onboard, but it’s much smaller than what is found on typical tugs and will mainly serve to recharge the battery on longer trips or where charging facilities are scarce.
“If needed, you can turn these generators on — we never want a crew to have to turn down a job or risk being stranded due to a low battery,” Lee explained.
Otherwise, he said, the short and predictable routes that tugs typically handle make them ideal candidates for electric propulsion. Since electric systems are less complex, Lee expects Arc’s tugs will require less maintenance downtime. Coupled with the savings from reduced fuel use, Lee believes these tugs will be an attractive option for operators.
Yet there’s a key distinction between these new tugs and Arc’s sport boats: Lee himself isn’t allowed to personally test the tugs. He’s spent plenty of time piloting the Arc One, Arc Sport, and Arc Coast — sometimes alongside celebrity backers like Kevin Durant. But operating tugs of this size requires a special license, so Lee can’t take the helm. (He has, however, driven the company’s much smaller “truckable” tugboat launched earlier this year.)
Nonetheless, Lee remains enthusiastic about the opportunity this represents.
“There’s a lot of excitement in shipbuilding and the maritime industry right now, much of which centers on defense, but this sector is a critical part of the economy,” he said. “All this commercial activity depends on these ‘tractors of the water’ that push and pull vessels into place. We now have a chance to modernize this process in a truly impactful way.”
