-- Orbital to construct and operate a heavy duty engine testing facility capable of operating conventional and alternative fuel engines such as Natural Gas, LPG and Biodiesel, in Balcatta, Western Australia to certification levels. -- Commonwealth Government to provide A$2.8M in funding.
PERTH, Australia, June 19 /PRNewswire-FirstCall/ -- International clean
energy technology group, Orbital Corporation Limited (ASX: OEC - "Orbital"),
reinforcing its position at the forefront of clean engine research &
development in Australia, is to construct and operate a heavy duty engine test
facility after securing Australian Federal Government support. The new
facility will be capable of operating engines on Natural Gas, LPG and
Biodiesel as well as Diesel and Gasoline.
Orbital said today that it had entered into a Funding Agreement with the
Commonwealth of Australia ("Commonwealth") to construct and operate the new
state-of-the-art facility at its Australian headquarters in Balcatta, Western
Australia.
It is anticipated that the facility will be fully operational by March,
2009.
The facility will provide the following services:
-- Heavy duty engine emissions testing research of in-service vehicles for
Commonwealth and State Government authorities;
-- Engine development and emission testing services for Australian and
Asian companies seeking to develop cleaner engine technologies and reduce
greenhouse gas emissions; and
-- Heavy duty engines emissions research for government authorities
seeking to validate the environmental credentials of alternative fuel and
drive-train technologies for heavy vehicle applications in Australia and Asia.
Under the terms of the Funding Agreement, the Commonwealth will provide a
grant of A$2.76 million through the Alternative Fuels Conversion Program
administered by the Department of the Environment, Water, Heritage and the
Arts towards total estimated construction costs of A$3.56 million. Orbital
will fund the maintenance and operation of the facility until at least FY
2014/15 and provide the Commonwealth with preferential access to the facility.
Commenting on the funding agreement, Orbital's CEO elect, Mr. Terry
Stinson, said, "We are extremely pleased to have received this support from
the Commonwealth Government to construct a world-class testing and research
facility in Australia"
"With the continuing increase in the price of oil there is a strong
interest in alternative fuels for heavy duty vehicle applications and the
focus on greenhouse gas reduction. There are compelling reasons to further
research the economic and environmental outcomes of switching to Natural Gas
and LPG, particularly in the Australian operating environment, and this
facility will enable Orbital to be at the forefront of delivering new
technology into this growth market," Mr. Stinson continued.
"The new facility is yet another step in our strategy to grow an
integrated alternative fuel systems business leveraging off the extensive
engineering experience we have developed in recent years. Orbital will also
have the capacity to support a broader set of clean energy services to the
road transport, mining and other sectors. Orbital anticipates increased
opportunities in the alternative fuels market, particularly in Australia and
Asia."
About Orbital
Orbital is an international developer of innovative technical solutions
for a cleaner world. Orbital provides innovation, design, product development
and operational improvement services to the world's producers, suppliers,
regulators and end users of engines and engine management systems for
application in motorcycles, marine and recreational vehicles, automobiles and
trucks. Orbital's principal operations in Perth, Western Australia, provide a
world class facility with capabilities in design, manufacturing, development
and testing of engines and engine management systems. Headquartered in Perth,
Western Australia, Orbital stock is traded on the Australian Stock Exchange
(OEC) and the OTC Bulletin Board (OBTLY).
Forward Looking Statements
This release includes forward-looking statements that involve risks and
uncertainties. These forward-looking statements are based upon management's
expectations and beliefs concerning future events. Forward-looking statements
are necessarily subject to risks, uncertainties and other factors, many of
which are outside the control of the Company, that could cause actual results
to differ materially from such statements. Actual results and events may
differ significantly from those projected in the forward-looking statements as
a result of a number of factors including, but not limited to, those detailed
from time to time in the Company's Form 20-F filings with the US Securities
and Exchange Commission. Orbital makes no undertaking to subsequently update
or revise the forward-looking statements made in this release to reflect
events or circumstances after the date of this release.
SOURCE Orbital Corporation Limited
