quotedcleantech

Clean Air Power (CAP) has announced a delay in the launch of full scale production of its Dual-Fuel product with Volvo because of manufacturing problems.

CAP hopes that factory production will be back on track later this year and will provide further clarification of how long this is expected to take. Earlier in the year, Volvo announced that it was opening a production line for engines incorporating the Dual-Fuel technology developed by CAP, which enables diesel or natural gas to be used as fuel. The collaboration provides additional credibility for the technology and should help CAP’s successful entry into the US market, which has significant growth prospects and competitive technology that is more expensive than CAP’s Dual-Fuel. 

This delay, combined with lower revenues from other parts of the business, mean that CAP will not meet expectations for 2011. House broker Seymour Pierce had expected 2011 revenues of £7.89 million. The interim figures showed a dip in revenues from £2.3 million to £2.1 million and a rise in the loss from £1.2 million to £1.3 million. The company still had £2.2 million of cash on the balance sheet at the end of June 2011.