Contact fillip for Clean Air Power
CLEAN Air Power has signed a $1m contract extension to develop a demonstration for the South East Asian market.
The Lancashire company which develops compression-ignited natural gas engine systems for heavy duty vehicles, has won a deal from an unnamed global truck manufacturer to develop and deliver a demonstration vehicle equipped with its MicroPilot engine.
The news sent CAP’s shares up 14% to 1.17p. The stock market value of the company which counts Chelsea FC owner Roman Abramovich as an investor has slumped in recent months.
In a stock market announcement the Preston firm said the new covers engine and vehicle system development and will be worth $1m in additional revenue in 2015. The contract also contains an option to extend the programme to a second vehicle.
It said: “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.”
Chief executive John Pettitt added: “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.
“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.”
