According to the agreement, three years of close cooperation on a product development partnership will be followed; this document will supersede the Letter of Intent signed in January 2009. Moreover, the Clean Air Power’s OEM product will be marketed and supported by Volvo Truck Corporation.
Incorporating Clean Air Power’s Dual-Fuel technology into these truck engines will deliver significant greenhouse gas emission reductions, fuel cost savings compared with standard diesel engines and around 30% more energy efficient than equivalent spark ignited natural gas engines. The engines can use natural gas or biogas as the main fuel but can also run on only diesel.
As the press release informed, 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.
A development agreement was also signed with Volvo Bus Corporation. Volvo and Clean Air Power will jointly develop the installation of Dual-Fuel kits provided by CAP on existing bus engines to make it possible for buses from Volvo to run on Dual-Fuel in the future. The development programme is valued at £160,000.