10 Sep 2014 07:00
10 September 2014
Clean Air Power Limited
("Clean Air Power" or the "Group")
Letter of Intent signed with global truck manufacturer
Clean Air Power (AIM: CAP), the global leader in the development and delivery of compression-ignited natural gas systems and software for heavy duty vehicles, is pleased to announce that it has signed a Letter of Intent to commence the first phase of a production development program for a MicroPilot diesel-natural gas engine for the South East Asian and other markets. This follows the successful conclusion of a funded concept study with a global truck manufacturer (announced on 10 February 2014).
This first phase of the program is targeted to commence in September 2014 and will last 6 months, generating revenues for Clean Air Power of over $3 million. If successful, the program will then enter a second phase with the objective to bring a MicroPilot diesel-natural gas engine for the South East Asian and other markets to the start of production in 2017.
Clean Air Power will continue to be supported by Ricardo as part of the co-operation agreement signed in September 2013.
Commenting on the agreement, John Pettitt, CEO of Clean Air Power, said:
"We are delighted to be moving from the concept phase to the first phase of production development on a MicroPilot diesel-natural gas engine with the potential to deliver a significant improvement in performance and efficiency. Our client is a progressive, global truck manufacturer with a bold ambition for the future application of compression-ignited natural gas engines. Its commitment to move ahead with this next phase demonstrates the quality of our technology and the value that our relationship with Ricardo can bring to OEM partners. Our ambition is to become a global design, development and delivery partner of compression-ignited natural gas engines and we are excited about the potential of this latest success to open the door to other OEMs partnerships."
Note: a MicroPilot diesel-natural gas engine is a fully interfaced engine system that takes advantage of the Group's patented MicroPilot technology and modern diesel engine technology so that only very small (i.e. "micro") quantities of diesel spray (i.e. "pilot") are needed to ignite a mixture of natural gas and air, delivering levels of performance that are not possible to achieve with existing, retro-fitted Dual-FuelTM system technology.
For further information, please contact:
Clean Air Power John Pettitt, Chief Executive Neill Skinner, Chief Financial Officer
| Tel: +44 (0)1772 624 499 |
Citigate Dewe Rogerson Malcolm Robertson Chris Gardner
Panmure Gordon Corporate Finance Freddy Crossley / Atholl Tweedie Corporate Broking Tom Salvesen
Peat & Co Charlie Peat Andy Cuthill | Tel: +44 (0)20 7282 2867
Tel: +44 (0)20 7886 2500
Tel: +44 (0)20 3540 1721
|
Notes to Editors
About Clean Air Power
Clean Air Power designs, develops and delivers diesel ignited natural gas engines for heavy duty transport applications. Clean Air Power's technology substantially cuts fuel costs and carbon emissions without sacrificing the original engine's characteristic efficiency or reliability. Clean Air Power is well positioned to assist corporations and governments to deliver on their environmental commitments while at the same time reducing transport operators overheads.
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.
Further information on Clean Air Power is available at www.cleanairpower.com