Volvo Powertrain Technologies signs up for CAP dual-fuel technology.
Clean Air Power (CAP), the developer of dual-fuel combustion technology that enables heavy-duty diesel engines to operate on a combination of diesel and natural gas,reports that it has formally signed a significant Supply Agreement with Volvo Powertrain and a separate Development Agreement with Volvo Bus Corporation.
Volvo Powertrain Agreement
The new Supply and Development Agreement, initially for five years, has been signed with Volvo Powertrain, a subsidiary of AB Volvo. It follows 3 years of close cooperation on a product development partnership and supersedes the Letter of Intent signed in January 2009. CAP’s OEM product will be marketed and supported by Volvo Truck Corporation.
CAP says incorporating their dual-fuel technology into Volvo truck engines will deliver significant greenhouse gas emission reductions and fuel cost savings compared with standard diesel engines. The trucks are expected to be around 30% more energy efficient than equivalent spark ignited natural gas engines. The engines can use natural- or bio-gas as the main fuel and can also operate on only diesel, an important feature as gas distribution systems face many years of development.
Commenting on the announcement, John Pettitt, CEO of Clean Air Power said: “We are delighted to have finalised this supply agreement with Volvo as it signifies the achievement of a major milestone set out at the time of our IPO. The agreement is the result of a long standing working relationship with Volvo and we are grateful for all the support and belief that they have shown in Clean Air Power. We also acknowledge Volvo’s admirable commitment to climate change and environmental issues, having progressed with this partnership through the difficult economic climate. We are optimistic that Volvo’s prestigious brand and resources will accelerate us into the commercial phase of our company’s development.”
The testing in commercial operation will begin in 2010 and initially take place in UK, Sweden and Thailand. Details for commercialisation will be mutually agreed upon.
The Volvo Group is one of the largest heavy duty engine manufacturers in the world.
Volvo Bus Agreement
CAP has also signed a development agreement with Volvo Bus Corporation, to jointly develop the installation of dual-fuel kits on existing Volvo bus engines. The development program is valued at £160,000.
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