Achates Power is an American developer of opposed-piston, two-stroke, compression ignition engines for use in commercial and passenger vehicles. Based in San Diego, California, the company was founded in 2004 by James Lemke. According to Achates Power, its opposed-piston, two-stroke engine has demonstrated an increase in fuel efficiency and similar engine-out emissions levels when compared to the Ford Power Stroke engine, named one of the leading medium-duty diesel engines. More recently, the company published a technical paper citing a 30 percent fuel economy improvement when its engine was benchmarked against a next-generation diesel engine equipped with advanced technologies. The paper also highlighted the Achates Power engines potential to meet Tier 3/LEV III emissions and 2025 CAFE. In December 2012, the company announced that it had been selected as a subcontractor to AVL Powertrain Engineering, Inc. to build the next-generation combat engine for the U.S. Army. Less than a year later, in October 2013, Achates Power and Fairbanks Morse Engine signed a joint development and licensing agreement to reduce emissions and fuel consumption of Fairbanks Morse proprietary and dual-fuel opposed-piston engines.