Advanced Engine Components Limited (“ACE”) is pleased to announce the naturally aspirated compressed natural gas (“CNG”) engines, developed in conjunction with SHIGAN Quantum Technologies Pvt Ltd (“SQT”) in India, have successfully completed the Bharat Stage IV (“BS IV”) emission testing.
BS IV certification is controlled by the Indian Government’s Ministry of Heavy Industries & Public Enterprises Automotive Research Association of India (“ARAI”). The certification is equivalent to Euro IV European Transient Cycle (“ETC”) certification.
Performance testing of vehicles using the naturally aspirated CNG engines has been conducted in parallel with the certification process. With performance testing and certification complete, ACE will proceed to fulfil the initial request to supply electronic control units (“ECU’s”) and injectors for over 1,000 engines. Deliveries will commence in June 2010. ACE’s development and certification of the four and six cylinder, turbo charged, CNG engines will be completed after commercial production of the naturally aspirated CNG engines has commenced.
ACE supplies natural gas vehicle system (“NGVS”) components for use in China, Thailand, Indonesia, France and Australia. These initial orders for India provide ACE with its fastest “roll out”, in terms of vehicle numbers, of any country to date.
The technical success and quality of ACE’s personnel and components has introduced new engine development opportunities within India. With additional working capital available from the recent share placement, the proposed rights issue and the restructured debt facilities, ACE will be able to pursue these opportunities in an efficient and timely manner as well as servicing all existing contracts.
India has the world’s fifth largest fleet of natural gas vehicles (“NGV”) in the world. More importantly, India has over 220 cities planned for CNG development with a nationwide distribution pipeline by 2012. The CNG pipeline will stretch 12,000 km, connect 15 states and reach a population of 160,000,000 people. As a result, India is recognised as having the highest NGV growth potential in the world. The expanded ACE Board recognise the opportunities in India and will use the current success to continue the market momentum.
