Secures First UAV Wind Turbine Inspection Contract

RNS Number : 5256P

Strat Aero PLC

19 February 2016

 

Strat Aero plc / Index: AIM / TIDM: AERO / Sector: Support Services

19 February 2016

Strat Aero plc ("Strat Aero", the "Company" or the "Group")

Secures First UAV Wind Turbine Inspection Contract

Strat Aero plc, the AIM quoted international aerospace company focused on the Unmanned Aerial Vehicle ('UAV') sector, is pleased to announce that it has been awarded a wind turbine inspection contract with Westar Energy ('Westar'), the largest electricity provider in the state of Kansas, USA.  This is the Company's first wind inspection and data analysis contract utilising its UAVs and proprietary software, and as a result it represents a significant milestone in Strat Aero's positioning as a full service UAV provider to the commercial and military sectors.

Under the terms of the contract, Strat Aero will initially inspect 53 turbines in two of five fields operated by Westar at a rate of six turbines per day.  The initial value of the contract is US$26,000 but with a total of 312 turbines on site there is scope for the initial contract announced today to be extended to cover the remaining 259 turbines across Westar's five fields, as well as others operated by Westar.  The Directors view this initial contract with Westar as proof of concept, and intend to use it as a springboard to secure additional contracts with Westar and other major operators in the US. 

Work has already commenced with the team managing to inspect eight turbines per day using its UAVs, compared to the two turbines per day typically handled by manual-led techniques traditionally employed by operators.  By enabling far less downtime and lost production, Strat Aero's UAV based solution therefore offers major savings in terms of time and costs for turbine operators.  In addition to the significant savings offered, the data gathered by the UAVs will be analysed and stored using Strat Aero's proprietary Digital Data Management software ('DDM'), which will be available to the customer at any time. 

Tony Dunleavy, CEO of Strat Aero, said: "This agreement follows an extended trialling process and signals a breakthrough for Strat Aero into a significant and potentially lucrative market.  The scope and scale of the wind farm industry in the US is enormous, and we are delighted to have embarked on this journey with Westar Energy, a preeminent figure in the market, generating over 7,000 MW of electricity and serving nearly 700,000 customers in much of east and east-central Kansas. 

"This initial phase of our relationship, which will see the inspection of 53 turbines, has already commenced and once again, the efficiency and functionality of drones have been clearly demonstrated.  With eight turbines being successfully inspected every day, a 33% increase on the amount originally envisaged, this increased performance will help enhance the financial efficiencies of the contract.  It also places us in a strong position to roll out this service to cover Westar's full portfolio of wind turbines across its five fields, in addition to providing a springboard into the larger wind turbine drone inspection market, which Navigant Research estimated will reach US$6 billion by 2024."

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Enquiries:

Strat Aero plc	Tel: [phone]
Tony Dunleavy (Chief Executive)
Graham Peck (Chairman)
SP Angel Corporate Finance LLP	Tel: [phone]
Nominated Adviser and Joint Broker
Stuart Gledhill Jeff Keating
Beaufort Securities Limited	Tel: [phone]
Joint Broker
Elliot Hance
St Brides Partners Ltd	Tel: [phone]
Financial PR Frank Buhagiar Susie Geliher

Notes

Strat Aero plc is a multi-divisional international aerospace services company, focussed primarily on the provision of complete client solutions in the Unmanned Aerial System ('UAS' market), which is predicted to show exponential growth over the coming decade.  Commercial and military applications in UASs are expected to be a dynamic growth sector in the aerospace industry over the next 10 years with the UAS market forecast to grow to more than US$82.1 billion between 2015 and 2025 (AUVSI Economic Report 2013) and the global airborne Intelligence, Surveillance and Reconnaissance ('ISR') market estimated to grow to US$19.23 billion by 2023. 

 

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