Business Excellence Company News: Chelsea FC owner Roman Abramovich takes stake in Leyland-based Clean Air Power
Clean Air Power, the developer and global leader in Dual-Fuel engine management software for heavy duty vehicles, has raised £5 million via a placing of almost 52 million shares.
Chelsea FC owner Roman Abramovich and Zara Shvidler, the wife of one of his best friends, have each taken a 1.5 per cent stake in the company.
Clean Air Power, based in Aston Way, Leyland, employs skilled engineers, semi-skilled workers and contractors from the local area, as well as using local suppliers, therefore the investment news will have a very positive impact on Leyland and its surroundings.
Clean Air Power is leading the way in the UK with its specialist technology which is being adopted globally. In the UK, companies such as Sainsbury’s, DHL, Eddie Stobart, B&Q, Wiseman Dairies and Arla Foods all operate heavy duty trucks fitted with Clean Air Power’s technology. The company is using a process that uses both diesel and natural gas to power HGVs. This reduces fuel costs and emissions since, as well as being greener, gas is also cheaper. Clean Air Power’s technology also ensures that the engine retains all the characteristics of a diesel engine such as overall power and torque, which is critical for an HGV operator.
The net proceeds of the Placing will be used to strengthen the Group’s balance sheet ahead of future partnerships, to supplement working capital and to support marketing and sales activities in Russia and the US. Russia is an increasingly important market for Clean Air Power with demand for natural gas vehicles expected to grow significantly as major Russian gas companies plan to invest heavily in expanding the gas refuelling network.
In the US, Clean Air Power recently announced an agreement with UPS to install and trial 10 of its trucks with the Group’s US version of its Dual-Fuel system.
John Pettitt, Chief Executive of Clean Air Power said: “We are delighted to have completed a successful fundraising with strong support from existing and new shareholders. The investment by Ervington Investments and Ms Shvidler confirms the huge potential of our Dual-Fuel technology and firmly endorses our strategy to develop markets in Europe, US and Russia. The trend towards the adoption of natural gas vehicles around the world is growing, driven by cost savings, reductions in emissions and increasing investment in new refuelling stations by major gas supply companies. With the support of our existing and new investors we are well placed to execute our commercial strategy across our target markets and deliver value to our shareholders.”