US Navy backs Hyliion’s megawatt-scale energy platform with $41.7M contract

KARNO Power Module is a cutting-edge modular power plant designed to provide cost-effective, low-maintenance, and fuel-flexible electricity.Hyliion Hyliion Holdings has secured a $41.7 million contract from the U.S. Office of Naval Research (ONR) to design, develop, build, test, and deliver 2-megawatt and 3-megawatt KARNO power generation systems, marking one of the company’s most significant government awards to date. The cost-plus-fixed-fee contract, valued at $41.7 million, will support the development of megawatt-scale versions of Hyliion’s modular KARNO™ power generation technology for locations designated by the Office of Naval Research. The company said additional details regarding the contract will be released at a later date. A push toward higher-power modular generation While Hyliion initially introduced the KARNO platform for commercial and industrial energy applications, the Navy contract represents a move toward significantly larger power systems capable of supporting demanding military operations. Unlike conventional diesel generators that rely on reciprocating piston engines, the KARNO Power Module is based on a linear generator architecture that converts heat into electricity with fewer moving parts. According to Hyliion, the system is designed to operate on a variety of fuel sources, including natural gas, hydrogen, propane, ammonia, and other compatible fuels, allowing operators greater flexibility as fuel availability and energy requirements evolve. The modular design also allows multiple power units to be combined, enabling systems to scale from commercial installations to multi-megawatt deployments such as those envisioned under the Navy contract. Why the technology matters Reliable electrical power has become increasingly important for modern military operations. Expeditionary bases, radar installations, communications facilities, ports, and logistics hubs all require dependable power generation, often in remote environments where access to conventional infrastructure is limited. Fuel flexibility can also offer operational advantages by reducing dependence on a single energy source. At the same time, modular systems can simplify transportation, maintenance, and future upgrades compared with large, permanently installed power plants. Hyliion says KARNO’s architecture is intended to deliver high efficiency while reducing maintenance requirements through its simplified mechanical design. Because the technology can utilize multiple fuel types, it is also designed to adapt as military and commercial users transition toward lower-carbon energy sources without requiring entirely new generating equipment. Expanding beyond commercial markets The award represents another step in Hyliion’s effort to expand beyond its initial commercial focus. The Austin, Texas-based company has positioned the KARNO platform as a modular power solution for commercial facilities, waste management operations, data centers, and microgrids. It has also identified marine applications and mobile power generation as future growth areas. The U.S. Navy contract suggests growing government interest in modular, fuel-flexible power technologies that can provide resilient electricity generation across a range of operational environments. Although neither Hyliion nor the Office of Naval Research has disclosed where the 2 MW and 3 MW systems will ultimately be deployed, the program will include the complete design, construction, testing, and delivery of the megawatt-scale generators. Additional program details are expected to be announced by the company in the coming weeks.Recommended ArticlesGet the latest in engineering, tech, space & science - delivered daily to your inbox.Kaif Shaikh is a journalist and writer passionate about turning complex information into clear, impactful stories. His writing covers technology, sustainability, geopolitics, and occasionally fiction. A graduate in Journalism and Mass Communication, his work has appeared in the Times of India and beyond. After a near-fatal experience, Kaif began seeing both stories and silences differently. Outside work, he juggles far too many projects and passions, but always makes time to read, reflect, and hold onto the thread of wonder.