Hyliion awarded U.S. Navy contract to advance multi-unit KARNO power module

Hyliion Holdings Corp., a leading provider of innovative KARNOTM Power Modules, has been awarded a Phase II Small Business Innovation Research (SBIR) contract in the amount of $1.5 million from the U.S. Navy to further develop and refine its scalable multi-megawatt platform for shipboard and stationary military applications.

The newly awarded Phase II contract builds on the successful completion of Phase I, during which Hyliion completed the initial concept design and architectural planning for a multi-megawatt naval-compliant power generator system. Phase II will focus on key enabling technologies for the multi-KARNO Core architecture, including the development of integrated software and power electronics, motion control improvements, and communications systems essential for scaled system operation. Hyliion expects Phase II to commence immediately and continue for a period of 18 months.

“Advancing the scalability and operational control of the KARNO Modules is critical to meeting the Navy’s future energy needs,” says Thomas Healy, Founder and CEO of Hyliion. “This award allows us to lay the groundwork for a highly resilient and efficient power solution that can adapt to mission requirements across both stationary and mobile defense operations.”

During Phase II, Hyliion will focus on the software required to manage and synchronize multiple KARNO Cores, ensuring they can deliver stable, dynamic power in high-demand environments. Additional work includes refining the integrated drive electronics to meet size, weight, power, and cost (SWaP-C) targets, and aligning control schemes with naval operating standards. These innovations are designed to accelerate Hyliion’s timeline to deploy a full multi-megawatt shipboard generator system.

Hyliion’s KARNO Power Module is a linear generator powered by heat rather than combustion. Its external heat generation architecture, enabled by additive manufacturing, is designed to support operation on more than 20 fuel types and produce electricity with high efficiency, low maintenance requirements, and minimal acoustic and thermal signatures—making it well-suited for naval applications.

Phase II development efforts will also align with Hyliion’s commercial 2 MW product roadmap, allowing for shared learnings between defense and civilian applications.