Arc gets its first major order for electric tugboats worth $160M

Summary

If you’ve heard of Arc Boats, the Los Angeles startup founded in 2021 by former SpaceX employees, it’s likely because you’ve seen its sleek sport boats. But the company’s also been pushing into the far less glamorous world of tugboats, and now has its first big order worth $160 million. The company announced Wednesday it has signed a contract of that value with Curtin Maritime, a tug and barge operator. The new hybrid-electric tugs are expected to hit the waters around the Los Angeles port in 2027. Curtin has ordered eight tugs — at around $20 million apiece — and Arc will build them in conjunction with Snow & Co. shipyard. Specifically, these are what’s known as ship-assist tugboats, which help nudge behemoth cargo ships into and out of major ports like Los Angeles. Arc CEO and co-founder Mitch Lee told TechCrunch these kinds of tugboats are “torque generating machines, which is really cool.” But the standard versions are powered by monster diesel engines that “just spew black carbon, [and] spew sulfur oxides” into the air, damaging the surrounding environment and risking the long-term health of the crews who work them. Lee said these kinds of tugs are some of the worst-polluting vehicles on the planet by linear foot. By largely replacing the diesel power plants with batteries and electric motors — more on the hybrid system in a moment — Arc can help tugboat operators cut down on that pollution. That puts them in a better position to comply with environmental regulations and improving air quality. And Lee expects the impact to be noticeable. While the deal with Curtin is just for eight tugboats, Lee said there are only about 20 of these kinds of vessels in operation at the LA port overall, meaning this one contract can take a big bite out of those emissions. Swapping the main power plant from diesel to electric also helps save space, Lee said. Much like how electric passenger cars tend to have more leg room and storage space due to simpler electric drivetrains, Lee...