10th Sep 2014 08:44
LONDON (Alliance News) - Clean Air Power Ltd Wednesday said Wednesday that it has signed a letter of intent to start the first phase of a production development programme for a MicroPilot diesel-natural gas engine for the South East Asian and other markets.
The company, which develops compression-ignited natural gas systems and software for heavy-duty vehicles, said the start of the new programme comes following a concept study, announced in February, with a global truck manufacturer.
The first phase of the programme is due to start this month and is due to last for six months. The company expects it to generate revenue of more than GBP3 million and, if successful, its expects to enter a second phase under which the MicroPilot engine would be brought into production by 2017.
Clean Air Power said it would continue to be supported by Ricardo PLC under a deal announced in September last year. Under that deal, the pair are working on the development of dual fuel engines for original equipment manufacturers.
Clean Air Power shares were up 5.9% to 4.5 pence per share on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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