The Advanced Engine Components (AEC) of Australia and Automobile Corporation of Pakistan (ACP), Karachi on Friday signed a memorandum of understanding (MoU), to form a joint venture company, which will provide conversions of diesel engines to compressed natural gas (CNG).
Currently, all buses and trucks in Pakistan operate on diesel fuel, which is imported whereas CNG is a natural resource. Experts say that the move to convert diesel buses to CNG will reduce Pakistan's diesel import bill by USD 1 billion. The AEC is listed on the Australia Stock Exchange with its corporate and R&D offices established in Perth, Western Australia.
Speaking at the signing ceremony, Tony Middleton, Managing Director of AEC stated that their company has already provided natural gas engine kits installed on diesel base engines for over 600 buses in France which have successfully completed over 45 million kilometres of running. In addition, AEC can provide conversion "kits" for Isuzu and Hino engines. AEC has also developed gas engines with Chinese OEMs like First Auto Works (FAW) and Weichai.
Current production allows AEC to deliver dedicated natural gas engines ranging from 130 to 280 hp. The Managing Director of ACP, Khayam Husain said that with this J-V, we plan to target the city bus segment and municipal trucks to start with. As Pakistan enjoys an extensive infrastructure of CNG stations and awareness also exists in the country on CNG in the transport sector, diesel to CNG conversions should find ready acceptance.
He stated that government's decision announced in the press on September 20 of the current year to convert all public vehicles to CNG is a bold and encouraging move as it will not only save valuable foreign exchange but also reduce emissions and pollution in the cities. The converted diesel engine with AEC kit will comply with Euro III standards. ACP is the leading manufacturer of specialised vehicles such as semi-trailer, aluminium tank trailers, and municipal vehicles.