ZERO-EMISSION vehicle maker The Tanfield Group has secured a trial supply deal with the UK's biggest commercial van operator that could be worth tens of millions of pounds to the firm.

The Smith Electric Vehicles division of Tyne and Wear-based Tanfield has struck a deal with BT to supply a prototype van for its Openreach engineering service, which will be tested over the next few weeks before a decision is made on whether to extend the deal.

The Northern Echo has learnt that, if the trial is successful, BT could contract Tanfield to supply up to 25 per cent of its 30,000 strong national fleet, in a deal that could be worth at least £100m for the group.

It would mark the latest success for Tanfield, which could have a new North-East factory within the next four months as it prepares to double production to more than 3,000 vehicles a year.

The company is also continuing with its rise in the US, with all three of its divisions - Smith, UpRight Powered Access and latest acquisition Snorkel - making strong progress.

Last night, Smith sales director Kevin Harkin said the BT trial was a very exciting development, and revealed the division is also in talks with other large clients about placing orders for its Newton and Edison models, which use zero-emission engines inside Ford Transit van shells.

One such vehicle can travel for up to 150 miles between battery charges and reach speeds of up to 50mph.

Mr Harkin said: "I must stress this is only in the trial stage, but they don't come any bigger than BT. Obviously, I don't know what they will commit to at the minute, but this is potentially a massive opportunity for us.

"We already have similar deals under way with a number of blue-chip clients, and there are also a few more in the pipeline, although we can't say too much about that yet."

Companies including Royal Mail, Sainsbury's and DHL also have such trials under way, with a view to increasing the green credentials of their vans.

He said that the prototype vehicle, which was unveiled to industry insiders at the Yorkshire Green Fleet event earlier this week, has been made using the latest lithium-ion phosphate battery, the safest product for the environment of it type, which is being developed at AIM-listed Tanfield's Vigo Centre base, in Washington, Wearside.

A spokeswoman for BT told The Northern Echo the company is "very, very interested" in Tanfield's vehicles and was awaiting the outcome of the trial before commenting any further.

"The order we place with Tanfield really depends on the success of the trial, but we are very keen to find out what they have to offer," she said.