Supply Agreement (3047Z)
January 12 2011 - 2:00AM
UK Regulatory
TIDMCAP
RNS Number : 3047Z
Clean Air Power Limited
12 January 2011
For immediate release 12 January 2011
Clean Air Power Ltd
("Clean Air Power" or "the Company")
Supply Agreement
Clean Air Power (AIM: CAP), the developer of Dual-Fuel(TM)
combustion technology that enables heavy-duty diesel engines to
operate on a combination of diesel and natural gas, is pleased to
announce a supply agreement with Volvo Bus Corporation which will
see Clean Air Power deliver 11 Dual-Fuel(TM) systems to Volvo Bus
Corporation and is valued at circa GBP200,000. Volvo Bus
Corporation is one of the world's largest manufacturers of buses
and bus chassis.
The supply agreement follows on from the development agreement
signed with Volvo Bus Corporation in July 2010 which stated that
Clean Air Power and Volvo would jointly develop the installation of
Dual-Fuel(TM) systems provided by Clean Air Power on existing bus
engines to make it possible for buses from Volvo to run on
Dual-Fuel in the future.
The 11 Dual-Fuel(TM) systems will be fitted directly onto the
buses on the Volvo production line and these buses are expected to
be in service in Sweden by July 2011. Once in service, the 11
vehicles will be the first Volvo buses to operate on both biogas
and diesel as part of a Swedish government backed project. Using
diesel technology increases environmental efficiency by up to
30-40% compared with current gas-operated buses. Due to this
positive environmental impact, this project is receiving
considerable support from the Swedish government who are
contributing almost SEK 24m (GBP2.25m) of funding towards the
project through the Swedish Energy Agency.
Further to this agreement, the Company is in follow-on
discussions with Volvo Bus Corporation regarding the joint
development of Dual Fuel(TM) engines for the next generation of
Volvo Buses and bus chassis.
This supply agreement is separate from the supply agreement
signed with Volvo Powertrain in July 2010, and represents a further
extension to the relationship which began in 2007.
Commenting on the agreement, John Pettitt, CEO of Clean Air
Power, said:
"We are delighted to announce this supply agreement as it
represents a further endorsement of the significant recognition
that Volvo has for our technology and the work that we have done
together to date. It is the first time that we have received a
supply agreement from this division of Volvo and hope that this
successful agreement may lead to further opportunities with Volvo
Bus Corporation in the future."
For further information:-
Clean Air Power Ltd 01772 624499
John Pettitt
Peter Rowse
Charles Stanley Securities 020 7149 6000
Nominated Adviser and Broker
Russell Cook / Carl Holmes
Buchanan Communications 020 7466 5000
Charles Ryland / Ben Romney
Notes to Editors
About Clean Air Power
Clean Air Power is the developer and provider of Dual-Fuel(TM)
combustion technology for heavy duty diesel engines. Dual-Fuel(TM)
engines substantially cut fuel costs and carbon emissions without
sacrificing the original engine's characteristic efficiency or
reliability. Clean Air Power is well positioned to assist
corporations and governments to deliver on their environmental
commitments while at the same time reducing transport operators
overheads.
Further information on Clean Air Power is available at
www.cleanairpower.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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