Hyliion to create megawatt-scale generator for US Navy and supply up to 10 KARNO generators for Flexnode

Hyliion, a developer of sustainable electricity-producing technology headquartered in Austin, Texas, USA, has been awarded a Small Business Innovation Research (SBIR) government contract by the United States Navy. Phase 1 of the award – N241-060 – will allow Hyliion to create a preliminary design of its KARNO generator in a megawatt-scale modular system.
The system will be engineered to offer a versatile and flexible approach to meet the US government’s Unmanned Surface Vessel (USV) cross-platform requirements, scalable to various power needs and adaptable to the available platform space. Hyliion plans to leverage its foundational 200 kW KARNO genset, combining multiple units together to achieve the desired power output.
“We are honoured to receive this SBIR contract from the United States Navy,” said Thomas Healy, founder and CEO of Hyliion. “This award is a testament to the KARNO generator’s expected ability to offer efficient, flexible, and low-maintenance power generation. We are excited to contribute to the Navy’s mission and explore higher power solutions for their USV initiative.”
The SBIR programme is an initiative that supports scientific excellence and technological advancements by investing federal research funds in key American priorities aimed at strengthening the national economy and defence infrastructure. The primary objective of the N241-060 programme is to develop and demonstrate a megawatt scale, ultra-reliable, and efficient USV modular generator concept tailored to the US Navy’s requirements. This concept involves configuring smaller kW-scale building block power units in a high-density package to achieve a 4,000-hour no-touch maintenance periodicity for continuous operation in a naval environment.

Flexnode contract
Hyliion has also signed a non-binding Letter of Intent with Flexnode, a digital infrastructure company. Under the terms of the LOI, Hyliion will supply up to ten KARNO generators (2 MW total capacity) to Flexnode, with the initial deliveries anticipated to commence in 2025.
This collaboration aims to support Flexnode’s mission of elevating the standard for high-density digital infrastructure that unlocks the potential of artificial intelligence and machine learning. By integrating efficient, fuel-agnostic KARNO generators, Flexnode expects to easily deploy digital infrastructure with reliable and clean on-site power generation.
Flexnode offers a universal building platform that integrates liquid-cooled data centre infrastructure for bespoke computing, storage, and networking solutions. Flexnode’s adaptable design enables businesses to deploy data centre capacity incrementally, aligning infrastructure growth with demand. Flexnode’s solutions are able to deliver scalability, optimise edge performance for latency-sensitive workloads, and enhance efficiency through advanced cooling technologies, significantly reducing operational costs and environmental impact. This digital-first approach ensures unparalleled flexibility and resilience.
“Availability, carbon intensity, and energy costs are critical factors currently limiting the growth and deployment of data centres. Integrating Hyliion KARNO generators into our Flexnodes for on-site clean energy production allows our customers to accelerate their plans and deploy data centers on demand without compromises,” said Flexnode co-founder and CEO, Andrew Lindsey. “Hyliion’s sustainable power generation technology perfectly aligns with our vision of creating high-performance, efficient data centres that push the boundaries of traditional infrastructure.”
“Our KARNO generator technology is ideally suited to meet the increasing power and energy demands of data centres,” stated Thomas Healy. “By combining KARNO generators with Flexnode’s cutting-edge digital infrastructure solutions, we are pioneering a new approach to deploying modular, highly efficient data centres in the industry.”


























