The recently announced increase in LNG production in Australia could signal a positive impact on the use of the gas as a road fuel, according to technology developer company Clean Air Power Ltd.

The AIM-listed firm believes that an increase in LNG production in Australia is likely to help sales of its dual-fuel technology, enabling heavy duty diesel engines to run on natural gas.

Industrial gases producer BOC, owned by Germany’s The Linde Group, recently revealed plans to upgrade its Dandenong LNG facility on the East coast to triple its supply output from 50tpd to 150tpd.

It is this investment that Clean Air Power is so encouraged by, as explained by chief executive John Pettitt, “Clean Air Power is very encouraged that this global industrial gas organisation is recognising the clear benefits of LNG as a road fuel. Australia is a key market for our patented Dual-Fuel technology and we believe this significant investment will prove beneficial to our sales efforts on the East coast.”

BOC has stated that the new gas plant, which will provide additional supply for the Victorian market, is likely to be on-stream by August 2009.