Orbital Corporation Ltd (Ausralia) has signed a Memorandum of Understanding (“MoU”) with one of Singapore’s largest defence companies, for the design, development and initial low rate production of multi-fuel engines for unmanned air vehicles

Orbital UAV’s latest generation of engines are derivatives of the company's Modular Propulsion Solution and are being flown on Insitu’s ScanEagle platform.(Picture source:US Marine Corps)

The scope of the MoU outlines three proposed phases of work:

Phase 1: The development, integration and supply of a first prototype multi-fuel engine.
Phase 2: Supply of a small number of additional prototype engines for further evaluation requirements by the customer.
Phase 3: Following the successful completion and acceptance of Phases 1 and 2, 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 2 and 3 of the program are dependent on the successful completion and acceptance by the customer of the first prototype engine identified in Phase 1.

“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, CEO and Managing Director of Orbital UAV.

The MoU is binding, subject to the successful completion and acceptance by the customer of Phase 1, and the mutual agreement of terms and conditions of subsequent contracts for Phases 2 and 3.

The initial contract, issued under the MoU, will not impact the Company’s current financial year revenue guidance figure of $25-$35 million.