A Lancashire company that specialises in natural gas engine systems for HGVs has clinched an international deal worth around £664,000.
Leyland-based 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 new contract extends the agreement to commence the first phase of a production development programme for a MicroPilot compression-ignited natural gas engine for the South East Asian and other markets.
Clean Air Power’s patented MicroPilot and Dual-Fuel technology enables engines to run on natural gas mixed with diesel or any suitable combustion fuel.
The contract extension includes both engine and vehicle system development, and is worth approximately $1m in additional revenue in 2015 for Clean Air. It will also strengthen the company’s cash resources and the contract contains an option to extend the programme to a second vehicle.
Clean Air Power will continue to be supported by Ricardo plc on this extended programme as part of the on-going co-operation agreement signed in September 2013.
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 programme.
“It also demonstrates the value that our relationship with Ricardo plc can bring to our manufacturing partners. 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.”