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American Power Group receives US$600 000 for vehicle dual fuel orders

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Hydrocarbon Engineering,

American Power Group Corporation has announced that its subsidiary, American Power Group Inc. (APG) has received follow on purchase orders from two of its top US customers for APG V5000 Turbocharged Natural Gas® Systems and supporting CNG fuelling systems. These new orders, which total over US$600 000, are expected to ship during the current quarter and into the company's third fiscal quarter and will bring the two customers' collective APG dual fuel truck fleet to over one hundred units.

Lyle Jensen, American Power Group Corporation's Chief Executive Officer stated, "As evidenced by these orders, our vehicular efforts are benefiting from a recent Congressional approval of an alternative fuel excise tax credit of US$0.50/gal. retroactive to 2015 and in place for 2016, which some fuel suppliers are passing on in the form of lower CNG and LNG pump prices. In addition, a recent federal law change provides that LNG will be taxed on its British thermal unit (BTU) value, which reduces the federal fuel tax by US$0.17/gallon."

Jensen added, "In these times of increasing federal, state and local regulatory pressure to reduce harmful emissions on multiple fronts, we are seeing an increasing number of fleets placing a much higher value on the significant emission reduction benefits of APG's Turbocharged Natural Gas® technology than in the past. When APG's V5000 system is installed on a 2010 and newer original equipment manufacturer (OEM) selective catalyst reduction (SCR) engine, the average emission results are 50% below the current EPA/CARB nitrous oxide (NOx) standards, which is one of the lowest readings in the industry. We estimate we have over 100 million cumulative customer miles of on the road experience with no recalls and no major field performance issues which is a testament to the reliability and durability of our design."

Jensen concluded, "We believe APG provides the best dual fuel conversion technology at the lowest total cost of ownership available in the market and provides a bridge technology to significant follow on markets. We are taking this emission reduction data directly to multiple state regulatory entities, especially in California, to show that APG's dual fuel solution is a proven and immediate solution for them to move closer to meeting their emission reduction mandates."

Adapted from press release by Francesca Brindle

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