Orbital Corp secures $2.08 million contract continuation for unmanned aerial vehicle engine

Unmanned aerial vehicle (UAV) engine developer Orbital Corporation has nabbed a $2.08 million continuation contract with its major Singapore customer for the Design and Development and Verification and Validation phase of the principal engine development contract signed in July 2022.

It’s another positive milestone in the new UAV engine program, with works commencing immediately and expected to contribute $0.5m in FY23, with the balance to be realised in FY24.

“Engineering work continues to progress as planned, moving us towards initial production later this year,” Orbital Corporation (ASX:OEC) CEO and MD Todd Alder said.

“The multi-fuel UAV engine incorporates Orbital UAV’s patented heavy fuel technology and will provide best in class performance to our customer.”

Growing demand for heavy fuel injection tech

Heavy fuel is the preferred fuel for aviation applications around the world, providing safety and logistical benefits, and the company says its proven heavy fuel injection technology has achieved hundreds of thousands of flight hours for multiple global customers and continues to set benchmark performance.

“Heavy fuel engine capability remains critical to the successful deployment of systems operating within the UAS space,” Alder said.

“We continue to see that requirement grow and our engine development program with our Singapore customer is a perfect example of this global demand.”

Engine production scheduled for 2024

Production of the new engine model is scheduled to commence in the first half of financial year 2024, with manufacturing at Orbital UAV’s established operations in Australia, where the company already has two engine models in production.

“With leading edge testing facilities and advanced aerospace manufacturing systems and processes, Orbital UAV has the capability and capacity to supply the world’s largest UAV manufacturers,” Alder said.

“The addition of our Singapore customer’s engine model to our existing production lines will continue to build our global reputation and demonstrate our superiority in this field.”

This article was developed in collaboration with Orbital Corporation Limited, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.