3 Feb 2015 07:00
3 February 2015
Clean Air Power Limited
("Clean Air Power" or the "Company")
Contract Extension worth $1million signed to deliver MicroPilot demonstration vehicle for South East Asian market
Clean Air Power (AIM:CAP), the developer and global leader in compression-ignited natural gas engine systems for heavy duty vehicles is pleased to announce that it has secured a significant contract extension to develop and deliver a demonstration vehicle equipped with its MicroPilot technology for a global truck manufacturer.
The new contract extends the previously announced agreement with this global truck manufacturer to commence the first phase of a production development program for a MicroPilot compression-ignited natural gas engine for the South East Asian and other markets. This extension includes both engine and vehicle system development, and is worth approximately $1 million in additional revenue in 2015 for the Company. It will also strengthen the Company's cash resources. Furthermore, the contract contains an option to extend the program to a second vehicle.
The vehicle will be used by the global truck manufacturer to demonstrate to its target markets the high levels of performance, efficiency and natural gas substitution that can be achieved using Clean Air Power's MicroPilot technology. Clean Air Power will continue to be supported by Ricardo plc on this extended program as part of the on-going co-operation agreement signed in September 2013.
Test results from the Company's MicroPilot research and development programs, including the Company's partnerships with Brunel University, London, have demonstrated that MicroPilot technology can deliver over 90% substitution of diesel with natural gas, along with a 10% improvement in both power and torque and a 60% reduction in NOx emissions compared to conventional dual-fuel technology.
John Pettitt, Chief Executive of Clean Air Power, said: "This significant contract extension reflects the increased commitment by our progressive global truck manufacturing partner to MicroPilot technology and further underlines their bold ambition for this program. It also demonstrates the value that our relationship with Ricardo plc can bring to our manufacturing partners. Along with our research results, which continue to demonstrate the potential for MicroPilot technology to be a game-changer in the demanding heavy duty truck industry, this new contract is another step forward in our ambition to be the design, development and delivery partner of choice for compression-ignited natural gas engine systems."
Enquiries:
Clean Air Power | Tel: +44 (0)1772 624 499 |
John Pettitt, Chief Executive Officer | |
Neill Skinner, Chief Financial Officer | |
Citigate Dewe Rogerson | Tel: +44 (0)20 7282 2867 |
Malcolm Robertson | |
Chris Gardner | |
Panmure Gordon | Tel: +44 (0)20 7886 2500 |
Corporate Finance | |
Freddy Crossley / Atholl Tweedie | |
Corporate Broking | |
Tom Salvesen | |
Peat & Co | Tel: +44 (0)20 3540 1721 |
Charlie Peat | |
About Clean Air Power
Clean Air Power designs, develops and delivers compression-ignited natural gas engines for heavy duty transport applications. Clean Air Power's patented MicroPilot and Dual-FuelTM technology enables engines to run on natural gas mixed with diesel (or any suitable combustion fuel) providing the "spark" that ignites the gas. Substituting natural gas for diesel cuts fuel costs, emissions of carbon, nitrous oxide and particulates whilst retaining the original engine's power, efficiency and reliability characteristics. Clean Air Power operates in the US, Europe, Russia and Australia and has two commercial divisions:
Dual-Fuel™ Vehicle Systems
Delivery of patented Dual-Fuel™ systems which include fully-interfaced systems developed in partnership with truck manufacturers and the Group's Genesis-EDGE system, developed in-house as an after-market solution. Dual-Fuel™ is a type of system that adapt diesel engines to run on a combination of diesel and natural gas whilst retaining engine's basic infrastructure. The Division sells systems to truck manufacturers for on-line assembly, approved partners for after-market installation or direct to customers through its own installation facilities. The Division also undertakes design and development work for governments and truck manufacturers on Dual-Fuel™ and next-generation MicroPilot systems.
Components
Design and manufacture of innovative hydraulic valves, injectors and filters for natural gas engines sold to truck manufacturers around the world. Initially founded in the USA in 1991, around £50m has been invested in developing the technology with the result that 69 patents are currently held or pending. The holding company of the Group is based in Bermuda with operational subsidiaries in the UK, the USA and Australia. The Group was admitted to the AIM market of the London Stock Exchange in February 2006.