KleenAir to breeze onto market
Article Date: Feb 10 2006
KleenAir Systems, which has developed a way of reducing the levels of nitrogen oxides and particulates emitted by diesel engines, is looking to raise £1.25 million from investors ahead of an anticipated AIM launch on 24 February.
Led by executive chairman Lionel Simons, KleenAir hopes to benefit from the tightening of air quality standards across the UK and Europe. Traditionally, catalytic converters have focused on removing carbon monoxide from exhaust fumes for obvious health reasons. With nitrogen oxides and other particulates linked to disorders including lung disease and cancer, however, attentions are turning to the removal of these substances too and several imminent initiatives should work in the company’s favour.
Most prominent of all is the public carriage office directive, which will, from July, require all London taxis to be compliant with the Euro III emission standards. Some 15,000 cabs currently fail to meet these requirements and Simons argues that KleenAir provides the cheapest route to compliance. The retrofit of its equipment costs around £2,500, whereas converting a taxi to run on LPG comes in at around £9,000.
‘We’re very confident the market is there for us,’ confides Simons, ‘but we need to establish ourselves quickly. We need to develop our sales and technical support teams and the funds we’re raising now will enable us to put those things in place.’
Advised by Falcon Securities, KleenAir is anticipated to command an £8 million market cap on arrival.
