Hyliion Holdings Corp. has secured a milestone USD 41.7 million contract from the Office of Naval Research to scale its fuel-flexible KARNO generator technology into multi-megawatt systems for U.S. Navy land and maritime deployments.
The U.S. Office of Naval Research (ONR) has awarded Hyliion Holdings Corp. a contract valued at USD 41.7 million to engineer and deliver advanced multi-megawatt power generators. Under the agreement, the company will produce two customized KARNO Power Modules rated at 2-plus MW and 3-plus MW for validation at the Naval Sea Systems Command facility in Philadelphia. Headquartered in Austin, Texas, Hyliion Holdings Corp. specializes in sustainable electricity generation solutions, utilizing thermal efficiency technologies to provide distributed power for industrial, commercial, and defense end-users.
This defense award represents Hyliion’s largest military contract to date, reflecting growing demand for resilient, high-density power systems across expeditionary and naval environments. By scaling its base 800 kW architecture up to 3 MW capacities, the developer demonstrates the adaptability of linear-generator technology to satisfy stringent military performance metrics. The systems provide fuel flexibility, elevated electrical conversion efficiency, and minimal maintenance overhead, yielding lower thermal and acoustic signatures crucial for high-security maritime operations.
For defense logistics and the broader marine sector, adopting flexible generation architectures addresses mounting power demands while streamlining fuel supply lines and extending operational range. In addition to powering diverse U.S. Navy vessels and land-based facilities, the scalable generation design possesses cross-industry utility. The underlying technology offers a viable localized power solution for commercial sectors facing grid constraints, including data center operations and critical industrial microgrids.
The contract highlights an accelerating trend where defense procurement drives commercial scaling for advanced power technologies. Successful deployment within Navy testing grounds will validate multi-megawatt linear generators for harsh environments, bolstering the U.S. domestic industrial base. Early validation provides a key bridge to commercialization, establishing capital-efficient avenues for distributed power generation across energy-intensive global industries.
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