New orders boost for Clean Air Power
CLEAN Air Power, the Lancashire company pioneering compression-ignited natural gas engine management systems for heavy-duty vehicles said it was making progress in some of its markets, but still trying to resolve problems in the US.
Technical difficulties with its US Genesis EDGE Dual-Fuel product sparked a profit warning from the Leyland-based group in September, and CAP said it was still trying to resolve these problems, ahead of testing by the Environmental Protection Agency there.
Previously the test engine had met all EPA emission requirements in internal testing at company facilities in this country.
On a more positive note the AIM company whose investors include Chelsea FC owner Roman Abramovich said it had recently received a new order for a minimum of 10 and up to 20 Genesis-EDGE Dual-Fuel retro-fit systems from a large Belgian haulier. The systems are to be delivered between now and the end of Q1 2015.
The company said its restructuring of the European business around the development of the Russian market also continues to progress and it was keeping a tight rein on costs.
In Asia, the CAP has signed the contract with an un-named global truck manufacturer to begin the first phase of a production development program for a MicroPilot diesel-natural gas engine for the South East Asian and other markets. This project will generate revenues of over $3m in the period to April 2015. If successful, the program will move to a second phase targeting the start of production in 2017.
Chief executive John Pettitt said: “The receipt of new orders for our European Genesis EDGE system and continued progress in developing the market in Russia are encouraging. Along with Russia, the US represents a sizeable new market for Clean Air Power and we are working hard to resolve the technical issues with our US product and to bring it to market.
“We also continue to build on our long-term strategy of designing, developing and delivering compression-ignited natural gas engines for OEM partners and Tier 1 suppliers. We are very pleased to have signed the contract for the first phase of our production development program in South East Asia. The market remains significant and represents a major opportunity for Clean Air Power.”
