Investing.com -- Modular power technology developer Hyliion Holdings (NYSE American: HYLN) will deliver two multi-megawatt KARNO Power Modules to NAVSEA Philadelphia under its $41.7 million Office of Naval Research contract, bringing the company's cumulative ONR funding above $58 million, Investing.com has learned.

The award, first disclosed July 22, is the Austin, Texas-based company's largest military contract to date.

The units, rated at 2-plus MW and 3-plus MW scale, are built on the company's existing modular 800 kW architecture and will be validated in land and maritime applications. The cumulative ONR funding spans initial validation, testing, upcoming at-sea trials and now multi-megawatt deployment.

In June, Hyliion founder and CEO Thomas Healy told Investing.com that the company was anticipating adding $40 to $50 million in military contracts across multiple branches this year. “The commercial structure of those agreements will evolve. But the foundation right now is a deep technical partnership, not just a transaction,” he added.

Despite a decline from its mid-June highs, Hyliion stock has surged this year, up 110% to $3.94 apiece as of Wednesday’s close. In the last 12 months, it has rallied over 160%.

For the Office of Naval Research contract, Healy stated that it accelerates the development of the company’s multi-megawatt KARNO systems and expands the range of naval platforms the technology can support.

Navy interest in the platform has centered on its fuel flexibility, electrical efficiency and low-maintenance design.

The modules are expected to reduce logistical burden and extend mission endurance while maintaining low acoustic and thermal signatures, a consideration for maritime and expeditionary operations.

"The Office of Naval Research has been a tremendous partner in advancing the KARNO technology, and their continued investment reflects the confidence they have built in both our team and the platform," Healy said.

The contract also supports Hyliion's strategy of running a common KARNO architecture across markets, with the same platform aimed at defense missions and distributed power applications including data centers.