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USAF More Than Doubles Ondas' ULTRA Drone Contract As Potential MQ-9 Reaper Alternative Emerges
Thursday's Department of War contract update signals increased US Air Force investment in long-endurance surveillance drones that could complement the MQ-9 Reaper and help fill intelligence, surveillance, and reconnaissance mission gaps following reported heavy losses in the US-Iran conflict.
The USAF more than doubled the value of its contract with DZYNE Technologies, now part of Ondas, bringing the total to about $85.6 million.
As we noted last week, DZYNE's ULTRA platform represents a potential lower-cost Group 5 drone that could complement the MQ-9 Reaper and eventually assume some of its ISR missions.
DoW's contract update:
DZYNE Technologies LLC, Fairfax, Virginia, has been awarded a $46,087,217 modification (P00003) to a previously awarded contract (FA8691-26-C-B007) for Operational Assessment of Uncrewed Long-Endurance Tactical Reconnaissance Aircraft. This modification brings the total cumulative face value of the contract to $85,643,057 from $39,555,840.
Work will be performed stateside and at overseas locations and is expected to be completed by March 26, 2031. Fiscal 2025 research, development, test, and evaluation funds in the amount of $12,288,390 are being obligated at the time of award. The Air Force Life Cycle Management Center, Dayton, Ohio, is the contracting activity.
Our read here is that DoW's aircraft description fits DZYNE's ULTRA surveillance-drone program, developed with the Air Force Research Laboratory. The meaningful boost to the contract shows how urgently the USAF needs to replenish its Group 5 drones, given the reported Reaper losses (upwards of 25% of the fleet) in the US-Iran conflict so far.
2024 image of American MQ-9 Reaper UAV brought down in Yemen’s Marib. ClashReport/XAnother signal that DoW is likely to boost DZYNE's ULTRA orders even more came at the Air & Space Forces Association's Air, Space & Cyber Conference earlier this month, when the USAF's Troy Meink commented on the need to upgrade the US military's unmanned aircraft fleet over the next six years.
Meink told the audience:
And this is not the only class of autonomous aircraft we are aggressively pursuing. As we saw in Epic Fury, ISR strike platforms have been essential. We have used MQ-9 and even now the ULTRA aircraft to great effect.
Building on these lessons, we are developing a family of low-cost multi-role strike platforms called the Mass Modular Aircraft, or MMAs.
MMAs will provide affordable, attritable, long-range strike, and we will be able to field them at scale. Our intent is to field 100 MMAs in 2029 at even a lower cost than the CCAs and a fraction of the cost of manned aircraft we build today. Then by 2032, 500 of these platforms will join our force operational fleet.
Follow-on orders would likely depend on available funding, with the Trump administration's proposed record defense budget potentially providing a runway for a lot more orders if passed.
Ondas, the company that acquired DZYNE earlier this year, closed around $7.64 on Friday and has a staggering 41% short float.
Any significant contract news on ULTRA orders, coupled with Wall Street waking up to the fact that this Group 5 drone can replace the Reaper for ISR missions, could spark a squeeze.
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Southeast Asia Keeps Building Gas Plants Despite Hormuz LNG Shock
Authored by Irina Slav via OilPrice.com,
Countries in Southeast Asia are still building natural gas-fired power plants despite the price inflation in gas caused by the Middle East war. Asian countries are also building more LNG import capacity, Global Energy Monitor reported.
The net-zero think tank said there was some 100 GW in new gas-fired power generation capacity under construction across the region and 70 GW in LNG import capacity.
"The continued expansion of LNG import infrastructure risks deepening exposure to the same supply disruptions and price volatility the crisis has brought to the fore," Global Energy Monitor said. The outlet noted that Southeast Asia could boost its domestic natural gas production to reduce dependence on imported liquefied gas but warned that this would take time.
"GEM identifies at least 20 fields that could add around 62 bcm/y of production capacity by 2035, but new supply takes years to develop and may not even supply domestic power markets," the think tank said.
Asia is the biggest buyer of liquefied natural gas and gas been ramping up related infrastructure for years, motivating the surge in planned production capacity as well. Yet gas prices were lower for much of that period, making such plans commercially viable. The war in the Persian Gulf led to a sharp drop in available liquefied gas supply, pushing prices significantly higher, sapping some Asian importers' appetite for LNG.
Global Energy Monitor argued in its report that the war is putting Southeast Asia's gas expansion to the test, noting that "much of the remaining planned expansion rests on three assumptions: that LNG will remain reliably available, that it will remain affordable enough to compete with alternatives, and that domestic gas can provide a fallback when imports are constrained." Whether these assumptions have a sound basis is yet to be determined as the war extends into its seventh month.
Tyler Durden Sat, 09/26/2026 - 21:00