Azure Dynamics Corp. announced that its dealer MidWest Transit Equipment has been awarded a contract with Terre Haute (Ind.) Transit for two Azure CitiBus hybrid electric vehicles. Terre Haute Transit currently operates eight buses on fixed route operations. MidWest Transit Equipment managed the sale.

Midwest Transit Equipment has seen increased interest in alternative energy vehicles. Azure's CitiBus can achieve up to 40 percent improvement in fuel economy, a 30 percent reduction in maintenance costs and a 30 percent reduction in greenhouse emissions.

Azure Dynamics and Midwest Transit Equipment previously partnered on an agreement with the Michigan Department of Transportation (MDOT) for a contract that created a three-year fixed price for up to 50 Azure Balance Hybrid Electric buses. That contract has a total potential maximum value of $5.6 million.

Azure Dynamics developed the hybrid electric CitiBus using the HD Senator bus body manufactured by Supreme Corporation's StarTrans Bus Division for paratransit and shuttle bus customers. The CitiBus has completed the Altoona 200,000-mile, seven-year durability test and meets the requirements for most federal and state stimulus programs.