Future FinTech Announces Agreement to Develop Advanced Rail Transport System
Rhea-AI Summary
Future FinTech (NASDAQ: FTFT) has announced a significant Project Cooperation Agreement through its subsidiary Future Commercial Group Co. Ltd. with Innovatelab LLC to develop an advanced rail transport system. The joint venture, with FTFT holding a 55% stake, will commercialize the patented 'Vacuum Parcel' technology for ultra-high-speed rail transportation.
The technology differs from traditional Hyperloop concepts by utilizing an open pipeline with a moving low-vacuum layer, potentially achieving aircraft-like speeds while being more cost-effective than existing high-speed rail systems. The innovation is protected by US Patent No. US11,220,278 B2, granted in January 2022. The project has already completed critical model tests, including static vacuum wrap experiments and 200-meter motion vacuum wrap experiments.
Positive
- None.
Negative
- Significant capital investment required for development and commercialization
- Technology still unproven at full commercial scale
- Ambitious two-year commercialization timeline may face challenges
- Potential competition from established transportation companies and systems
News Market Reaction
On the day this news was published, FTFT declined 5.41%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
The planned rail system is an ultra-high-speed ground transportation network that will utilize pipelines as operational tracks with the potential to achieve operational speeds comparable to aircraft as it provides a solution to the technical challenge of reducing drag in low-vacuum pipelines. The successful implementation of this technology is expected to be significantly more cost-effective than existing high-speed rail systems. In addition, it is anticipated to have a strong competitive edge in the rail transit industry through its high-speed operation, and enhanced safety and effectiveness. Furthermore, it will drive rapid development in related industries and service sectors.
Elon Musk put forward the concept of the Hyperloop high-speed transportation system in 2013, with vacuum steel tube transportation as its theoretical core. By combining maglev technology, low-vacuum pipelines and linear motor drive, it aimed to achieve passenger and cargo transportation at near-sonic speeds. Subsequently, multiple countries and regions, including China Aerospace Science and Industry Corporation, followed up with development efforts. However, the need to maintain a low-vacuum state throughout the pipeline led to various technical challenges that remain unsolvable at present. Among these, the major technical bottlenecks hindering the development and implementation of the Hyperloop system include safety operation risks caused by massive energy accumulation in the fully enclosed low-vacuum pipeline, difficulties in construction, challenges in addressing thermal expansion and contraction for pipeline connections, and problems related to passenger evacuation in case of failures. Hyperloop One, the main developer of the project based in
Unlike Elon Musk's Hyperloop system that relies on low-vacuum tube propulsion, the core principle of the joint venture's technology significantly surpasses conventional approaches. The technology uses an open pipeline to establish a vacuum wrapped state, with its body wrapped by a moving low-vacuum layer, so that the train can achieve low air resistance and achieve speed close to that of an aircraft. For more information about the joint venture, please visit http://skyline-express.tech.
Dr. Marvin Liu, the inventor of this technology, is an internationally renowned authority in vacuum transportation physics with a Ph.D. from Dartmouth College and over 20 years of cutting-edge research experience. The invention was granted a patent by the
Dr. Marvin Liu stated, "This technology simplifies Hyperloop's vacuum tube transportation into conventional steel pipe transport, significantly reducing development cycles and costs while enhancing technical feasibility. It also represents the optimal solution to Hyperloop's current technical bottlenecks. This project will be implemented step-by-step as per careful planning to include model testing, system integration, performance limits and commercial feasibility operations."
"We have completed critical model tests including static vacuum wrap experiments, 200-meter motion vacuum wrap experiments and computer simulations, all achieving expected results. We believe this innovation not only breaks through existing low-vacuum ultra-high-speed transportation science but also serves as the key to making rail transport safe, scalable and commercially viable."
Mr. Li Hu, CEO of FTFT, commented, "The existing
"We welcome governments, enterprises and entrepreneurs with technology, capital and vision to collaborate with us. And we particularly invite Mr. Elon Musk and his team to validate or participate in this technology. FTFT will spare no effort to drive this revolutionary technology to take its first commercialization step within the next two years!"
About Future Fintech Group Inc.
Future FinTech Group Inc. (NASDAQ: FTFT) is a comprehensive financial and digital technology service provider. The Company, through its subsidiaries, conducts brokerage and investment banking services in
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SOURCE Future FinTech Group Inc.
FAQ
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