• Firstly, the development, integration and supply of a first prototype multi-fuel engine;

   

   

• Secondly, supply of a small number of additional prototype engines for further evaluation requirements by the customer; and

• Thirdly, following the successful completion and acceptance of phases one and two, the customer may authorise a low rate production run of the
  multi-fuel engine.

Under the MoU, an initial contract has been signed to commence work within Phase 1 of the program. This initial phase of work is anticipated to be completed within the next 18 months. Commencement of phases two and three of the program are dependent on the successful completion and acceptance by the customer of the first prototype engine identified in phase one.

“The MoU and initial contract provide us with the opportunity to further demonstrate our industry leading know-how and technical expertise in the UAV market with a new international customer,” said Todd Alder, chief executive and managing director of Orbital UAV.

The MoU is binding, subject to the successful completion and acceptance by the customer of phase one, and the mutual agreement of terms and conditions of subsequent contracts for phases two and three. The initial contract, issued under the MoU, will not impact the company’s current financial year revenue guidance figure of $25-$35 million.

Orbital UAV provides integrated propulsion systems and flight critical components for tactical UAVs. Its design thinking and patented technology enables it to meet the long endurance and high reliability requirements of the UAV market. It has offices in Australia and the US to serve its client base.