A fuel efficiency consortium has been awarded a £1.5m grant from Innovate UK's Energy Catalyst to develop new engine technology.

Over two years, the project’s aim is to reduce carbon emissions and energy costs in the most common size of generator for data centres and manufacturing plants.

The group is led by the Warwichshire-based Lontra, which will use its Blade Compressor as turbo compounding technology to enhance fuel efficiency of the 2PG engine.

Other consortium partners include Nottingham University, 2020 Power Generation and Integral Powertrain.

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Steve Lindsey, chief executive and founder of Lontra, said: "Leading the consortium is a first for Lontra and marks significant progress in the development of the Blade Compressor. It is a huge opportunity for Lontra to take the lead on new innovations within the engineering sector to harness the global market and the huge energy savings our product offers."

Peter Dirken of Innovate UK added: "Innovate UK’s Energy Catalyst grant is designed to back the most innovative solutions to develop sustainable energy technology.

"As a UK-based consortium, Lontra and partners of the project are powering forward to reduce carbon emissions and energy costs. The investment in homegrown innovations bolsters the UK’s competitive edge on a global scale."

The Innovate UK grant will allow the group to take the technology from concept, through to hardware and testing stages.