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20th
June 2008
ORBITAL
TO ESTABLISH A NEW TEST FACILITY FOR HEAVY DUTY ENGINES
- 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 - 20 June 2008 - 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".
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.
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