New Flyer Awarded $3.4 Million from Sustainable Development Technology Canada
to Further Advance Battery-Electric Bus Technology
WINNIPEG, Oct. 26, 2012 /CNW/ - (TSX:NFI; TSX:NFI.DB.U) New Flyer Industries
Inc. ("New Flyer" or the "Company"), the leading manufacturer of heavy-duty
transit buses in Canada and the United States, along with its consortium
partners, announced today that it has been awarded $3.4 million in funding
through Sustainable Development Technology Canada ("SDTC") to further enhance
rapid-charge battery-electric bus propulsion technology.
The funding will contribute to on-going work to create the future of green
public transportation underway here in Manitoba with New Flyer's consortium
partners, which includes the Manitoba Government, Manitoba Hydro, Mitsubishi
Heavy Industries, Ltd., Red River College and Winnipeg Transit.
"Today's announcement is welcome news for our community. Our government is
helping Canadian business develop innovative new energy technologies and
create Canadian jobs - including right here in Winnipeg," said Lawrence Toet,
Member of Parliament for Elmwood - Transcona, Winnipeg, on behalf of the
Honourable Joe Oliver, Canada's Minister of Natural Resources. "This electric
bus technology developed by New Flyer is an example of clean energy innovation
that provides Canadians with high-quality jobs and contributes to our long
"This is a clear example of how cleantech can truly revolutionize an industry:
we have here a technology that will bring down operational costs while
reducing emissions," said Vicky Sharpe, President and CEO of SDTC. "Together
with its partners, New Flyer will put this technology to the test - a move
that could revolutionize Canada's transportation industry."
"Made-in-Manitoba clean energy technology will be the future of public
transit," said Manitoba Premier Greg Selinger. "I'm thrilled the work we are
doing here is attracting new partners to help us continue to move forward with
the development of green mass transit vehicles to be used here and around the
The SDTC project involves the development and implementation of four
rapid-charge battery-electric transit buses and a high capacity charging
station. These buses are targeted to be delivered in the fourth quarter of
2013 and will be operated by Winnipeg Transit in revenue service over a
four-year period. This project will examine the technology and key
operational performance issues including: the charging system, battery
capacity, component life and reliability and the assessment of both
operational and life cycle cost savings.
This announcement comes on the heels of the consortium partners unveiling of
the battery-electric bus prototype on June 1, 2012, an award by the Chicago
Transit Authority to New Flyer on June 21, 2012 for two battery-electric buses
and the unveiling of two New Flyer all-electric accessory hybrid-electric
buses by Minneapolis Metro on August 14, 2012. New Flyer's electrification
development has been focused on the Xcelsior platform, the Company's highly
successful next-generation transit bus.
"We're really 'charged up' by the interest in our battery-electric bus," said
Paul Soubry, New Flyer's President and Chief Executive Officer. "This
important project further allows us to execute on our electrification strategy
and pushes closer to the critical point of cost-effective commercialization of
this propulsion technology in bus applications." Soubry added, "We acknowledge
the Canadian Government's recognition of clean technology and appreciate
SDTC's substantial support in developing a sustainable future in
battery-electric bus technology. This project will help identify and resolve
technical and economic operational issues in the real world battery-electric
transportation, advancing it closer to commercial reality."
Zero-Emission battery-electric propulsion transit buses are expected to
significantly reduce green house gas and smog-causing criteria air contaminant
emissions. In Manitoba, where the electrical grid is highly renewable (>98%
electricity is generated without burning fuel), the use of electric propulsion
buses are expected to translate to an estimated reduction of 160 tonnes (or
nearly all) of carbon dioxide equivalent emissions per bus per year, compared
to the diesel propulsion transit buses currently operated by Winnipeg Transit.
"For us it's all about improving service to our customers. If we can have
quiet, comfortable, long life buses with lower emissions and lower operating
costs, it is a big win for our organization and our community," said Dave
Wardrop, Director of Winnipeg Transit.
All dollar amounts in this release are stated in Canadian currency.
About New Flyer
New Flyer is the leading manufacturer of heavy-duty transit buses in Canada
and the United States. The Company's three manufacturing facilities - in
Winnipeg, MB; St. Cloud, MN and Crookston, MN - are all ISO 9001, ISO 14001
and OHSAS 18001 certified. The Company currently operates a parts
fabrication facility in Elkhart, IN and four parts distribution centers in
Winnipeg, MB; Brampton, ON; Erlanger, KY and Fresno, CA. The Company also
operates a service center in Arnprior, ON.
With a skilled workforce of over 2,000 employees, New Flyer is a technology
leader, offering the broadest product line in the industry, including drive
systems powered by clean diesel, LNG, CNG and electric trolley as well as
energy-efficient diesel-electric hybrid vehicles. New Flyer has delivered
over 32,000 heavy-duty buses in Canada and the United States. All products
are supported with an industry-leading, comprehensive parts and service
network. Further information is available on New Flyer's web site at
The common shares and convertible unsecured subordinated debentures of New
Flyer are traded on the Toronto Stock Exchange under the symbols NFI and
About Sustainable Development Technology Canada (SDTC)
On behalf of the Government of Canada, Sustainable Development Technology
Canada (SDTC) helps commercialize Canadian clean technologies, readying them
for growth and export markets. With a portfolio of companies under
management valued at more than $2 billion, SDTC is demonstrating that
cleantech is a driver of jobs, productivity and economic prosperity.
SDTC operates two funds aimed at the development and demonstration of
innovative technological solutions. The $590 million SD Tech Fund™
supports projects that address climate change, air quality, clean water, and
clean soil. The $500 million NextGen Biofuels Fund™ supports the
establishment of first-of-kind large demonstration-scale facilities for the
production of next-generation renewable fuels.
SDTC works with the private sector, the financial sector and all levels of
government to meet the Government of Canada's commitment to create a healthy
environment and a high quality of life for all Canadians. SDTC operates as a
not-for-profit corporation. For more information: www.sdtc.ca.
This press release may contain forward-looking statements relating to expected
future events and financial and operating results of New Flyer that involve
risks and uncertainties. Although the forward-looking statements contained
in this press release are based upon what management believes to be reasonable
assumptions, investors cannot be assured that actual results will be
consistent with these forward-looking statements, and the differences may be
material. Actual results may differ materially from management expectations
as projected in such forward-looking statements for a variety of reasons,
including market and general economic conditions, battery-electric propulsion
on transit buses is still largely unproven technology and there is no
assurance that such technology will result in a product desired by customers,
the prototype buses must be tested and proven in operating conditions, a
commercialized product must be marketed and sold to potential customers, there
may be no significant demand for an all-electric bus from customers, the
economic conditions of and funding availability for customers to purchase
buses and to purchase parts or services and the other risks and uncertainties
discussed in the materials filed with the Canadian securities regulatory
authorities and available on SEDAR at www.sedar.com. Due to the potential
impact of these factors, New Flyer disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, unless required by applicable law.
Jon Koffman, Investor Relations Tel: (204) 224-6672
SOURCE: New Flyer Industries Inc.
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-0- Oct/26/2012 16:05 GMT
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