Clean Air Power – trading update
Clean Air Power (AIM: CAP), the developer and global leader in compression-ignited natural gas engine management systems for heavy-duty engines, today provides a trading update.
In Europe, the Company has recently received a new order for a minimum of ten 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 restructuring of the European business around the development of the Russian market also continues to progress. As previously announced, the first customer orders have now been received following the delivery of five demonstration vehicles to our Russian partners earlier in 2014.
In Asia, the Company has signed the contract with a global truck manufacturer to commence the first phase of a production development program for a MicroPilot diesel-natural gas engine for the South East Asian and other markets. This follows the previously announced Letter of Intent and will generate revenues of over $3million in the period to April 2015. If successful, the program will move to a second phase targeting the start of production in 2017.
In the US, work is progressing on the US Genesis EDGE Dual-Fuel™ product to resolve the technical issues which have delayed testing by the Environmental Protection Agency (EPA). The test engine had previously met all EPA emission requirements in internal testing at company facilities in Leyland, UK.
Across the Company, cost control measures have been implemented and the Company continues to manage its cash resources tightly.
John Pettitt, Chief Executive of Clean Air Power, 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.”
