Clean Air Power, Anglo-American specialist in 'dual-fuel' technology, has joined AIM after raising £10 million at £1.

From its research and development centre in San Diego, California, Clean Air Power has developed a patented technology to enable heavy duty diesel engines to operate primarily on natural gas, instead, with diesel only used as a 'liquid sparking plug'. By burning 90 per cent natural gas, vehicle users save money thanks to greater fuel efficiency and cut down pollutant emissions.

The company's duel-fuel product range includes engines meeting emission standards set by US federal and state agencies and the European Union. Clean Air Power says duel-fuel is currently used by more than 50 customers in more than 1,600 vehicles.

With £30 million funding since 1991 from US and Canadian venture capital groups, the company underwent a major restructuring last year. This involved shifting the operations centre from San Diego to Leyland in Lancashire and moving the head office to near Oxford.

Experienced John Pettit joined as chief executive officer, with Rodney Westhead, former boss of motor consultant Ricardo, as chairman. Pettit claims 'the prospects for developing our presence in UK, Australian and US markets are exciting'.

Although Clean Air Power has not yet broken even, analysts expect revenues to increase from £3.45 million to £5.6 million this year. Broker Canaccord Adams is nominated adviser and broker to the company, which the placing price valued at £26.3 million, and the shares went to a modest premium at 103p this morning.