Clean Air Power secures £600k Asian deal
AIM-listed Clean Air Power has secured a significant contract extension to develop and deliver a demonstration vehicle equipped with its MicroPilot technology for a global truck manufacturer.The Preston-based developer says 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 $1m in additional revenue in 2015 for CAP.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 per cent substitution of diesel with natural gas, along with a 10 per cent improvement in both power and torque and a 60per cent 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.”