Fleetzero raises $43 million Series A to scale electric and hybrid propulsion for commercial shipping

Fleetzero has secured $43 million in Series A funding to expand the manufacturing and deployment of its hybrid and electric marine propulsion systems, as well as to establish a new manufacturing and research facility in Houston, Texas.

The investment round was led by Obvious Ventures, with participation from Maersk Growth, Breakthrough Energy Ventures, 8090 Industries, and other investors. The capital will be used to scale production of Fleetzero’s Leviathan™ hybrid and electric propulsion system, which is currently being deployed on commercial vessels in multiple markets.

Fleetzero develops hybrid-electric and fully electric propulsion architectures aimed at reducing fuel consumption, emissions, and operating costs for large commercial ships. The company said the new funding will support increased manufacturing capacity and continued development of autonomy-enabled marine systems.

“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 chief executive officer of Fleetzero.

The company’s newly announced Houston headquarters will function as its primary manufacturing and R&D hub. According to Fleetzero, the facility includes a production line with an initial capacity of 300 MWh per year for marine energy storage systems, alongside a marine robotics and autonomy laboratory and a dedicated marine propulsion research centre. Fleetzero plans to expand production capacity at the site to up to 3 GWh per year over the next five years.

“Huston has the people who know how to build and operate big hardware – ships, rigs, refineries, and power systems,” said Mike Carter, co-founder and chief operating officer of Fleetzero. “We’re pairing that industrial DNA with modern batteries, autonomy, and software to bring back shipbuilding to the US.”

Fleetzero’s Leviathan™ system is designed for installation on both newbuild and existing vessels, supporting hybrid or fully electric configurations. The company said the system is intended to lower total cost of ownership through reduced fuel consumption and maintenance requirements, particularly for large commercial ships operating on predictable routes. The announcement comes amid growing interest in vessel electrification as shipowners and operators seek compliance with tightening emissions regulations and explore alternatives to conventional marine fuels. Fleetzero said the Series A funding will enable it to accelerate deployments and expand its role in the transition toward lower-emission maritime transport.