ARC Secures $160M Order for Electric Tugboats - Marine Technology News

Arc Boats Secures $160 Million Tugboat Order

Arc Boats, a Los Angeles-based startup established in 2021 by former SpaceX personnel, is gaining recognition not only for its stylish recreational boats but also for its expansion into the traditionally less-celebrated sector of tugboats.

A Significant Contract with Curtin Maritime

The company recently announced a substantial $160 million contract with Curtin Maritime, a prominent tug and barge service provider. These innovative hybrid-electric tugs are slated to begin operation around the Los Angeles harbor in 2027.

Curtin Maritime has commissioned eight tugs, each valued at approximately $20 million. Arc Boats will collaborate with Snow & Co. shipyard for the construction process.

The Role of Ship-Assist Tugs

These vessels are specifically designed as ship-assist tugboats. Their primary function is to safely maneuver large cargo ships during docking and departure procedures at major ports, including Los Angeles.

Addressing Pollution Concerns

According to Arc CEO and co-founder Mitch Lee, conventional tugboats are powerful “torque-generating machines.” However, they traditionally rely on large diesel engines.

These diesel engines release significant amounts of pollutants, including black carbon and sulfur oxides, negatively impacting both the environment and the health of the crews operating the vessels.

Lee emphasizes that these tugs represent some of the most polluting vehicles per unit length globally. Arc Boats aims to mitigate this issue by largely substituting diesel power with battery and electric motor systems.

Environmental and Regulatory Benefits

This transition will enable tugboat operators to substantially reduce pollution levels. This aligns with increasingly stringent environmental regulations and contributes to improved air quality.

The impact of this single contract is expected to be considerable. With only around 20 such vessels currently operating at the LA port, this order represents a significant reduction in overall emissions.

Space Optimization Through Electrification

Switching to an electric power plant also offers advantages in terms of vessel design. Similar to electric cars offering more interior space, Arc’s hybrid system allows for the removal of bulky components.

Specifically, large exhaust stacks, which typically occupy considerable space on a tugboat, can be eliminated.

Improved Crew Conditions

While the specific uses for the reclaimed space remain confidential, Lee suggests it could enhance crew accommodations. Tugboat crews often reside on the vessels for extended periods, sometimes up to two weeks.

Furthermore, the removal of smoke stacks will improve visibility for operators in the wheelhouse, enhancing safety and operational efficiency.

How Arc's Electric Tugboats Function

Arc has consistently focused on all-electric vessel development. The company’s primary goal is complete electrification across all types of watercraft. These newly designed tugboats will primarily utilize electric propulsion systems.

The electric motors will deliver over 4,000 horsepower, powered by a substantial 6 MWh battery. A diesel generator is included as a backup, but it’s significantly smaller than those found in conventional tugboats.

This generator will primarily serve to recharge the battery during extended voyages or in areas lacking sufficient marine charging infrastructure. Lee emphasized the importance of operational reliability.

“Operators should never be forced to decline work or risk being stranded due to inadequate battery capacity,” Lee stated. The typical, short-haul nature of tugboat operations is ideally suited for electric power.

Furthermore, the simpler design of electric powertrains is anticipated to reduce maintenance downtime for Arc’s tugboats. Combined with the cost savings from reduced fuel consumption, Lee believes these tugs will be an economically attractive option.

A key distinction between Arc’s new tugboats and its previous sport boats is the restriction on testing. Lee has personally piloted the Arc One, Arc Sport, and Arc Coast models, even including demonstrations for investors like Kevin Durant.

However, operating tugboats of this size necessitates a specialized license, preventing Lee from directly testing them. He has operated the company’s smaller, transportable tugboat announced earlier this year.

Despite this limitation, Lee remains optimistic about the potential of this market.

“There’s considerable excitement surrounding shipbuilding and the maritime industry, much of it centered on defense applications,” he explained. “However, this sector represents a vital component of the economy.”

“The vast majority of commercial maritime activity relies on these powerful vessels for maneuvering and positioning. We are positioned to modernize this critical infrastructure in a significant way.”