Hyliion Wins Navy Contract to Develop Multi-Megawatt KARNO Power Modules

Hyliion Holdings Corp., a developer of modular power plant technology, has announced it has been awarded a $41.7 million contract from the Office of Naval Research (ONR) to design, develop, and deliver two multi-megawatt KARNO Power Modules for validation in land and maritime applications at NAVSEA, Philadelphia. This contract represents Hyliion's largest military contract to date and marks a significant milestone in scaling the KARNO platform toward multi-megawatt power solutions for both defense and commercial applications.

Rendering of the Multi-Megawatt KARNO™ Power Module. (Image credit: Hyliion)
Rendering of the Multi-Megawatt KARNO™ Power Module. (Image credit: Hyliion)

Under the contract, Hyliion will develop and deliver two KARNO Power Modules rated at 2+ MW and 3+ MW scale, expanding the platform to support a broader range of US Navy vessels and applications. These systems build on the company’s modular 800 kW architecture to meet the higher power requirements of naval and land-based missions.

“This contract accelerates the development of our multi-megawatt KARNO systems and expands the range of naval platforms the technology can support,” said Thomas Healy, Founder and CEO of Hyliion. “The Office of Naval Research has been a tremendous partner in advancing the KARNO technology, and their continued investment reflects the confidence they have built in both our team and the platform.”

The multi-megawatt KARNO Power Modules are expected to expand the capabilities that have driven Navy interest in the technology: unmatched fuel flexibility, high electrical efficiency, and a low-maintenance design optimized for demanding operating environments. These attributes can reduce logistical burden, extend mission endurance, and deliver resilient power for maritime and expeditionary operations while maintaining low acoustic and thermal signatures.

This award underscores the critical role of investment in accelerating innovative power technologies that support national security and the domestic industrial base. It also validates Hyliion’s strategy of deploying a common KARNO architecture across diverse markets, enabling the same scalable platform to serve both defense missions and high-growth distributed power applications including data centers.

The views expressed are those of the author and do not reflect the official policy or position of the Department of Defense or the US Government.

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