Founded in 2020, Arc is a trailblazing company focused on electrifying watercraft. They’ve recently inked a game-changing $160 million contract with Curtin Maritime. This agreement marks a major milestone for Arc, which has spent a decade navigating the evolving landscape of business and technology within the transportation industry. The deal includes the design and construction of the tugboats, which will be hybrid-electric, with a unit cost of about $20 million each.
When complete, the new tugs will operate predominantly using electric propulsion. Each one will fly at speeds around 200 knots on their high-power, 4,000+ horsepower motors, powered by a 6 MWh battery system. These vessels are likely to be in service by 2027, mainly serving the busy port of Los Angeles. The hybrid-electric design increases efficiency while reducing noise and emissions. It further eliminates the requirements for tall exhaust stacks typical in conventional tugs, providing a much more generous envelope for crew quarters.
Mitch Lee, CEO and co-founder of Arc, could not contain his excitement about this pioneering effort. He pointed out the importance of tug operations during maritime events with the following remarks,
“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.”
Other than environmental benefits, the hybrid system holds the potential for major operational benefits to tugboat operators. Arc enables businesses to achieve substantial fuel savings by swapping out traditional diesel generators. They do it by leveraging advanced batteries and electric motors to achieve this transformation. This transition is especially fortuitous with diesel fuel prices skyrocketing. As a result, hybrid-electric tugs are an increasingly appealing economic choice.
Additionally, Lee emphasized that these hybrid tugs are more fuel efficient. He further pointed out that with their design, they make the most efficient use of space. He added that getting rid of obnoxious exhaust stacks frees up space to be more creative with crew accommodations. This change is critical as tugboat crews often spend weeks at a time residing aboard their work boats.
Arc has contracted with the Snow & Co. shipyard of St. Catharines, Ontario for the construction of these pioneering tugs. This partnership Bill & Gods builds on Snow & Co.’s extensive shipbuilding experience. Partnering with us, they’ll make sure those new vessels perform at or above the highest bars for performance and sustainability.
Reliability is key in any tugboat operation—especially when it comes to battery management. He promised bidders that the tugs would be electric propulsion first and foremost. He explained that operators should be able to fire up their generators at any time needed to keep the service flowing without a pause.
“There’s the option to turn these generators on if you need them — we never want an operator to have to turn down a job or be stranded because of insufficient battery on board,” stated Lee.
The hybrid-electric tug project is a great fit with Arc’s mission. We want to electrify every watercraft and reduce pollution from the maritime industry. Lee has noted that conventional tugs are among the most polluting vehicles per lineal foot. This underscores the urgent need to transition to cleaner, safer alternatives.
Arc is excited to be on the cusp of bringing its new fleet of hybrid-electric tugs into service. This decision puts the company deeper into the innovative space of the industry’s maritime future. The produce distribution company has taken a long-term approach to sustainability and operational efficiency. This commitment could revolutionize the way tugboats operate in busy, crowded ports around the globe.
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