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Caterpillar Inc. and SAAM Towage Sign Memorandum of Understanding to Implement Electrification and Alternative Fuel Technologies for Towage Applications
Alternative Fuel-Powered Tug Anticipated to Be Operational in 2026
Houston, Texas — Caterpillar Marine today announced it has entered a memorandum of understanding (MOU) with SAAM Towage to assess and implement alternative power solutions, including electrification and alternative fuels such as methanol and ethanol, for its tugboat fleet. The first SAAM Towage tugboat powered by Cat® 3500E dual-fuel methanol marine engines is anticipated to embark on its first job in 2026.
Headquartered in Santiago, Chile, SAAM Towage is a leader in towage and maritime services at more than 90 ports spanning 13 countries. With more than 150 tugs powered by Caterpillar Marine engines, SAAM Towage works closely with the company to leverage the latest technologies to enhance fleet performance. The MOU builds on this strong foundation to intensify the towage company’s continued investment in new propulsion and power technologies that align with the global maritime industry’s carbon reduction efforts.
“We’re committed to empowering SAAM Towage to reduce fuel consumption and greenhouse gas (GHG) emissions during idle time while enhancing the operational efficiency of their fleet,” said Brad Johnson, vice president and general manager at Caterpillar Marine. “Maritime electrification and the use of alternative fuels offer significant opportunities for the tugboat segment, depending on operators’ needs."
“Adopting alternative energy sources that reduce GHG emissions, such as electrification and lower carbon intensity fuels, positions us at the forefront of maritime innovation,” said Pablo Cáceres, director of sustainability and development at SAAM Towage. “We’re excited to forge this strategic alliance with Caterpillar Marine to help pioneer sustainable tug power options as we support our operational and climate-related objectives.”
Supported by the global Cat dealer network, this collaborative initiative aims to advance SAAM Towage’s climate-related objectives across its Americas operations. The towage company currently operates a select number of electrified Cat-powered tugs in British Columbia, Canada and is preparing to receive its third tugboat for SAAM operations in Chile. SAAM Towage anticipates expanding its electric fleet with Caterpillar’s marine-certified battery solutions under the MOU.
Additionally, the MOU enables SAAM Towage to augment its use of alternative fuel Caterpillar Marine engines with the methanol dual-fuel Cat 3500E. The engine is optimized to achieve high methanol substitution rates over a wide range of load factors, including the low load ranges used most by tugs.
About SAAM Towage
SAAM Towage is an infrastructure company with more than 60 years of history, and is a leader in the provision of port towage services in America. It operates in more than 90 ports in 13 countries with a modern fleet of nearly 200 tugboats. Additionally, it offers air cargo logistics services in eight airports in Latin America.
More information is available at: www.saam.com.
About Caterpillar Marine:
Caterpillar Marine, with headquarters in Houston, Texas, offers premium power solutions for a wide range of marine applications. With decades of experience designing engines and aftertreatment solutions, Caterpillar Marine products set the standard for quality, performance, and reliability. Caterpillar is dedicated to being your service provider on the water to provide engine and operational success. With Customer Value Agreements (CVAs), customers can take advantage of an extensive array of service options that can be tailored to their specific needs. Combined with our digital solutions, a CVA can provide valuable insights to engine health and performance. The global sales and service network is ready to support customers in tug, offshore, inland waterways, fishing, governmental, dredge, ferry, and yachting wherever they are.
More information is available at: www.cat.com/marine
About Caterpillar
With 2023 sales and revenues of $67.1 billion, Caterpillar Inc. is the world’s leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. For nearly 100 years, we’ve been helping customers build a better, more sustainable world and are committed and contributing to a reduced-carbon future. Our innovative products and services, backed by our global dealer network, provide exceptional value that helps customers succeed. Caterpillar does business on every continent, principally operating through three primary segments – Construction Industries, Resource Industries and Energy & Transportation – and providing financing and related services through our Financial Products segment. Visit us at caterpillar.com or join the conversation on our social media channels at caterpillar.com/en/news/social-media.html.
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