Australia, Perth

The Australian Government has approved a 'Commercial Ready Plus Grant' to assist Advanced Engine Components (AEC) Limited develop natural gas (NG) engine and vehicle technology for the Isuzu 295 and 510hp engines. AEC’s current development programme will enable the 295 and 510hp Isuzu vehicle operators to convert their diesel engines to CNG or LNG engines through the incorporation of AEC’s NGVS. Once converted, vehicles operating on NG will comply with Euro 4 emission standards (required under new legislation effective 1 January 2008) and maintain the same performance as the diesel equivalent.

In 2007, AEC successfully completed the development, commissioning and testing of compressed natural gas (CNG) and liquefied natural gas (LNG) versions of the Isuzu 190, 220 and 225hp 7.8 litre engines to Euro 3 emission standard. AEC is selling these AEC/Isuzu natural gas vehicle systems (NGVS) throughout Australia.

Engine development has commenced with the first of the new Isuzu vehicles delivered to AEC in February 2008. On-road testing will commence in July 2008 with the full programme completed by the third quarter of FY09.

The Isuzu 295hp vehicles, used for refuse collection, concrete delivery, urban delivery and general transport, represent approximately 17% of Australia’s total truck market. The 510hp engine, for the longer-haul intercity and interstate truck and trailer-unit market, is a relatively new but significant market for Isuzu.

Energy and environmental legislation, together with increased freight and transport costs, are key drivers for heavy duty engine vehicle operators seeking viable, alternative fuel solutions. Factors considered by the AusIndustry Board included: Australia’s abundant NG reserves; the price of oil; environmental concerns; the cost and performance competitive edge of the AEC/Isuzu engines; major Australian companies investing in NG refuelling infrastructure; the potential for the AEC/Isuzu development programme to obtain a significant share of the Australian commercial vehicle market within a relatively short period; and the potential for future export opportunities to other countries using equivalent Isuzu vehicles.