First published in InFocus: UK Quoted Clean Motoring, July 2007. ©  Cleantech Investor Ltd.

AIM listed KleenAir Systems International thought that new emissions standards for London taxis would create an opportunity but its technology wasn’t price competitive. Undaunted it believes that it is in a much stronger position to capitalise on the need for lorries to meet the emissions standards of the London Low Emission Zone (LEZ). By next February lorries greater than 12 tonnes will have to meet Euro 3 emissions standards if they want to come into London. KleenAir hopes that its technology, which uses metal filters, will be passed by Transport for London. The test results of the KleenAir Free Flow Partial Flow Filter, which is based on technology licenced by KleenAir, show that it will meet the requirements for the LEZ and the company says that it reduced nano-particles by more than 90%. KleenAir claims that its filter costs around 60% of the cost of an equivalent wall-flow filter. It doesn’t accumulate high levels of soot which cuts the likelihood of filter damage. The KleenAir system doesn’t reduce the level of particles as much as some other systems but it is relatively easy to fit. There isn’t that long to go and there are an estimated 45,000 vehicles that will need to be modified to comply – even assuming that many older vehicles are scrapped or don’t come into London. Two coaches owned by Westway Coaches will have the company’s emission reduction system fitted in a deal worth £8,000. Westway has 30 other coaches so this could lead to a much bigger order if the customer is happy. KleenAir intends to set up a network of around 10 garages in the London area which can fit its system. The product will be marketed through the Road Haulage Association’s publication, Roadway.

Next July vehicles of more than 3.5 tonnes and coaches have to comply with Euro 3 standards which will increase the market. Light commercial vehicles have to comply in 2010 and then in 2012 all vehicles will need to meet Euro 4 standards.

KleenAir has raised money this year and managing director Peter Newell believes that the company has enough cash for its existing requirements. KleenAir didn’t generate any turnover in the nine months to September 2006 and its cash outflow was just over £500,000. KleenAir should generate revenues in the second half of this financial year and it is likely to ask for deposits with customer orders.