BlackSea Technologies Awarded $256 Million Navy Contract

Designed to replace and significantly improve upon the legacy Offshore Petroleum Distribution System, SPDS will supply bulk fuel to land forces from the sea in expeditionary and contested environments. Photo from BlackSea Technologies

From BlackSea Technologies 

BALTIMORE, Md., May 5th, 2026, BlackSea Technologies announced today that it was awarded a five-year, $256 million contract to build and support the Seabased Petroleum Distribution System (SPDS) program. Under the contract, BlackSea will construct up to five SPDS units and support equipment from May 2026 through March 2031. Primary production will be centered in Baltimore with additional work supported by partners along the Gulf Coast. 

Managed by Navy PMO 314, Logistics Over the Shore, SPDS is a critical expeditionary fuel distribution capability designed to move bulk fuel from sea to shore in locations where traditional infrastructure does not exist. As demonstrated in Navy testing, the system supports the full mission profile of offshore deployment, fuel transfer, and distribution, giving joint and allied forces a more flexible and resilient means of sustaining operations ashore. 

The Navy has described the system as a next generation solution that provides a more survivable bulk fuel storage solution and helps meet emerging operational requirements in contested and infrastructure limited environments. 

“This award positions BlackSea Technologies to deliver a capability that directly supports expeditionary readiness and operational endurance in contested environments” said Charles Engstrom, BlackSea’s SPDS Program Manager. “SPDS answers a real logistics challenge for the joint force, getting fuel where it is needed, when fixed infrastructure is unavailable or at risk. We are proud to support Navy PMO 314 on a program that strengthens the nation’s ability to project and sustain power from the sea.” 

BlackSea’s work under the contract will draw on the company’s maritime engineering, production, and integration expertise, while leveraging a trusted industrial base in Baltimore and partners along the Gulf Coast. Together, that team will help deliver a system that enhances flexibility, resilience, and readiness for future operations. 

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