LONDON (Alliance News) - Clean Air Power Ltd saw its shares slide early Thursday after it said it had to withdraw its US Genesis EDGE Dual-Fuel test engine from the testing process until it has sorted out issues that were found with the selective catalytic reduction after-treatment system on the base diesel engine.
The developer of compression-ignited natural gas engine management systems for heavy-duty engines said in June that the engine had met all Environmental Protection Agency emission requirements in internal testing at its facilities in the UK. It was then shipped to Ricardo PLC's US unit for independent testing in preparation for an EPA certification application.
"Whilst in pre-certification testing the engine has demonstrated that it can meet EPA emission targets, technical issues with the selective catalytic reduction after-treatment system on the base diesel engine has prevented the completion of a full test cycle," it said.
Clean Air Power didn't detail the technical issues in its statement.
"We are now focused on resolving the technical issues, in the next few weeks, so that we can continue the testing programme and achieve certification and our first US sales as quickly as possible," Chief Executive John Pettitt added. "The success of the engine in meeting emissions targets in pre-certification testing means that I am confident of achieving EPA approval once testing is resumed.
Clean Air Power shares were down 12% at 2.20 pence early Thursday, one of the worst-performing stocks on the AIM All-Share index. However, the stock had pared an initial fall of 20%.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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