Fleetzero has raised $43 million in Series A financing to expand production of its hybrid and electric marine propulsion systems. The Houston-based company also announced the opening of a new manufacturing and R&D facility in Texas.
The funding will support expanded manufacturing of Fleetzero’s Leviathan™ propulsion system, which is being deployed globally on commercial vessels.
Highlights
- $43 million Series A led by Obvious Ventures with participation from Maersk Growth, 8090 Industries, and Breakthrough Energy Ventures
- New Houston facility includes production capacity of 300 MWh/year with plans to scale to 3 GWh/year within five years
- Leviathan™ propulsion system can be installed on new or existing ships in hybrid or all-electric configurations
- Marine autonomy development positions electrification as an enabler for unmanned cargo vessel technology
New Houston Headquarters
The Houston facility will serve as Fleetzero’s hub for manufacturing and R&D. The location includes:
- Production line with initial capacity of 300 MWh/year of marine energy storage systems
- Marine robotics and autonomy lab
- Marine propulsion R&D center
Fleetzero plans to expand Houston production capacity to 3 GWh/year over the next five years.
“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 COO. “We’re pairing that industrial DNA with modern batteries, autonomy, and software to bring back shipbuilding to the US.”
Leviathan™ Propulsion System
The Leviathan™ system can be deployed on new or existing vessels in hybrid or all-electric configurations. The system is designed to reduce total cost of ownership for large commercial ships through maintenance and fuel savings.
“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, co-founder and CEO.
Investment Partners
The round was led by Obvious Ventures with participation from:
- Maersk Growth (new investor)
- 8090 Industries (new investor)
- Breakthrough Energy Ventures (existing investor)
- Y Combinator (existing investor)
- Benson Capital (existing investor)
- Shorewind (existing investor)
“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.
Andrew Beebe, Managing Director at Obvious Ventures, noted that the Fleetzero team combines maritime and engineering expertise while scaling with operational ships and customers.
Strategic Implications
Fleetzero views electrification as a key enabler of marine autonomy and a strategic opportunity for US and European shipbuilding to recover after decades of decline.
“Fleetzero is uniquely positioned to take shipbuilding from a series of custom construction projects to truly high-volume manufacturing,” said Rayyan Islam, Co-Founder and General Partner at 8090 Industries.
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