APC Funding for Off-Highway Project

Advanced Propulsion Centre Funding for off-highway Project in collaboration with Turner Powertrain System Ltd

Torotrak, (LSE: TRK), a leading developer and supplier of emissions reduction and fuel efficiency technology for vehicles, is pleased to announce the award of funding from the UK’s Advanced Propulsion Centre UK Limited (‘APC’), to work in a co-funded consortium including Turner Powertrain System Ltd (a wholly owned subsidiary of Caterpillar Inc.) and the University of Hertfordshire on an off-highway project. The award has been made to advance the development and manufacture of a leading low carbon drivetrain with energy storage for a range of off-highway vehicles and machines. The total project value is GBP9.4 million, divided among the consortium members, with an anticipated GBP4.16 million in funding from the APC.

The 42 month project is expected to commence in December 2016 and will focus on developing and commercialising a leading edge hydrostatic continuously variable transmission with a flywheel-based energy storage system for off-highway machines and construction equipment. Torotrak expects to receive funding of at least GBP1.2 million to develop its Flybrid technology for these applications. In line with the aims of the APC, the project will enable improved performance, offering significant reduction in fuel consumption and CO(2) emissions and enable engine downsizing across a wide range of applications.

Torotrak is very pleased to have been selected by Turner Powertrain System Ltd to work on this project which will take the Flybrid energy recovery technology into a production-ready design for installation in a range of Caterpillar’s off-highway machines. Flywheel-based energy storage technology is ideally suited to off-highway and construction equipment applications, offering a robust, low-cost way to enable engine downsizing thereby reducing emissions and fuel consumption whilst improving machine¬†productivity. This new project will build on the Group’s experience in developing its hydraulically-connected energy recovery system (‘ERS’) for excavators and other off-highway machines which has a target production launch in 2018.

Adam Robson, Torotrak’s Chief Executive said: “We are delighted that Turner Powertrain System Ltd has chosen us as a partner for this project and that the APC has again backed one of our technologies. This investment will allow us to take a further significant step into the off-highway market.”

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon publication of this announcement, this information is now considered to be in the public domain.