An Australian company, Advanced Engine Components, has won a contract to build natural gas engines for Indian car maker Tata.

Advanced Engine Components is based out of Western Australia and is best known for its for their research, development and commercialisation of electronic fuel injection and engine management technologies. All of these which are designed to increase engine power while meeting, or improving on, international exhaust emission standards.

Over the past 20 years AEC has invested more than $27 million in its operations, and has received recognition via a number of prestigious awards, including the Australian Energy Award, Western Australian Energy Efficiency Award and the C Y O’Connor Award for Engineering Excellence.

Due to their tireless in this field of automotive research AEC was able to secure a 10-year purchase agreement with Tata Motors.

Tony Middleton, AEC’s managing director says the arrangement would generate more than $30million in the first three years of commercial production.

“This estimate is based on agreed minimum quantities and agreed sale prices for the AEC natural gas vehicle systems, related components and spares,” Middleton says.

Under the deal, Tata’s four-cylinder and six-cylinder engines will go through rigorous testing by AEC and will eventually be designed, developed, tested and certified into naturally aspirated and turbo-charged natural gas versions of themselves.

A November 2009 deadline has been set by the Indian motor company, which will include certification to Euro 4. Tata’s production and marketing will start in the December 2009 quarter, with the aim of full commercial production by the March 2010 quarter.

Tata will pay AEC for the development costs upon successful validation of the natural gas engines to Euro 4 standard.

Tata was India’s largest automotive manufacturer and the fourth-largest truck and the world’s second-largest bus manufacturer Middleton says, and has made and sold natural-gas buses since 2000.

AEC was already well advanced in India with natural gas engine development programs for Escort Motors and Force Motors and was also negotiating a formal joint venture arrangement with Vialle Alternative Fuel Systems.

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