The U.S. Air Force has selected Minco Technologies, a Tennessee-based engineering firm, to develop and demonstrate a next-generation drone engine under a $13.6 million contract aimed at dramatically improving fuel efficiency and operational resilience.

The project, officially titled the Modular Operationally Resilient Fuel-Flexible Extreme-Efficiency UAS-Engine System, seeks to reduce logistical fuel demands by up to 50 percent, according to a Pentagon announcement. Development and testing will be conducted in Cookeville, Tennessee, with completion expected by August 30, 2028.

Although specific technical details have not been disclosed, the initiative focuses on improving the endurance, range, and survivability of unmanned aircraft in contested and remote environments. The new propulsion system’s fuel-flexible design will allow operation on multiple fuel types, helping sustain drone missions farther from established bases while easing supply chain challenges in forward-deployed areas.

The move reflects a broader U.S. and allied effort to enhance logistics efficiency in military operations. Recently, five NATO member states placed a joint order for a next-generation hybrid power system to support Patriot air defense units. Developed by Germany’s VINCORION, the system is expected to reduce daily refueling needs threefold per battalion, minimizing resupply missions and lowering vulnerability to enemy attacks.

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