SOURCE: Alternative Fuel Technologies

December 09, 2009 09:30 ET

Alternative Fuel Technologies Receives Order From Shanghai Diesel Engine Company

Supplies China's Largest City With DME Fuel Pumps

REDFORD, MI--(Marketwire - December 9, 2009) - Alternative Fuel Technologies, Inc. (PINKSHEETS: AFTC), an innovator of clean energy fuel injection systems, announced today that it has received an order from Shanghai Diesel Engine Company ("Shanghai Diesel"), a leading manufacturer of diesel engines in the People's Republic of China ("China"), for twelve (12) dimethyl ether (DME) fuel feed pumps. Shanghai Diesel indicated the majority of the pumps will be used on DME-fueled buses operating in Shanghai, the nation's largest center of finance, commerce and transportation. The pumps are scheduled for deliveries over the next 90 to 120 days.

AFTC's first generation feed pump is in use throughout Europe and Korea. A second generation feed pump has been demonstrated and is undergoing final development. AFTC CEO James McCandless said that this second generation pump, now under development and testing, "Further improves performance and significantly lowers noise, making it ideal for public transportation systems, like buses, passenger cars and mid- to heavy trucks."

"Shanghai Diesel Engine represents the ideal customer to demonstrate the effectiveness of our pumps on public transpiration," said AFTC CEO James McCandless. "China represents an immense, emerging market for our low-cost, ultra-clean fuel injection parts and systems. As the nation invests billions of dollars into greener infrastructure projects, we foresee our relationship with Shanghai Diesel and other Chinese customers to expand in 2010," Mr. McCandless also stated.

A key component to China's 2008 stimulus plan calls for a $440 Billion investment in green energy in an effort to improve global energy security. Presently, China relies on coal-powered plants for about 75% of the nation's total energy needs. Industry analysts estimate that by 2050, coal reserves will decline to 30-50% of total energy consumption, as the country takes on a more diversified approach to energy consumption. By 2010, the nation expects to have 10% of all energy be from sustainable resources, like biomass, renewable energy and other combination sources.

About Shanghai Diesel Engine Company

Through its subsidiaries and associates, Shanghai Diesel Engine Company Limited primarily engages in the manufacture and sale of diesel engines, fuel injection pumps, and components of diesel engines. Shanghai Diesel Engine Company is a wholly-owned subsidiary of Shanghai Automotive Industrial Corporation (SAIC).

SAIC operates approximately 50 manufacturing plants in the Shanghai area. SAIC makes passenger cars, tractors, motorcycles, trucks, and buses. Through a joint venture with General Motors (GM), Shanghai General Motors makes Buicks and other GM cars for the Chinese market. Through Shanghai Volkswagen Automotive Company, a JV with Volkswagen, SAIC also makes the Lavida. The Company's other operations include car leasing, auto parts wholesale and retail, and financing. It has production facilities across China, as well as in Germany, Japan, South Korea, the UK, and the US. Other automotive companies owned by SAIC include Shanghai-Sunwin Bus Corporation; Shanghai-Huizhong Automotive Manufacturing and Shanghai-Xingfu Motorcycle.

About DME

DME is a new ultra-clean diesel fuel replacement that can be produced from abundant resources. These include natural gas, landfill methane, coal and biomass. At current oil prices, DME can be produced and distributed at less than 1/2 the cost of conventional fuel. When burned in a diesel engine, all soot emissions are eliminated and NOx emissions are lowered dramatically without the use of expensive exhaust aftertreatment devices.

About AFTC

Alternative Fuel Technology Inc. is the engaged in the design, development and prototype manufacturing of advanced fuel systems for use with a new alternative fuel -- dimethyl either (DME). AFTC has developed practical, low-cost fuel injection equipment for DME fueled vehicles. The Company sells complete DME fuel systems for testing and research purposes, in addition to retrofit systems that can be used with most diesel engines. The Company plans to launch a series production of DME fuel systems to the global automotive market by 2011. For more information, please visit

Safe Harbor Statement: Statements contained in this release, which are not historical facts, including statements about plans and expectations regarding business areas and opportunities, acceptance of new or existing businesses, capital resources and future business or financial results are "forward-looking" statements. You should not place undue reliance on these forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, including, but not limited to, customer acceptance of our products, our ability to raise capital to fund our operations, our ability to develop and protect proprietary technology, government regulation, competition in our industry, general economic conditions and other risk factors which could cause actual results to differ materially from those projected or implied in the forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this press release to conform these statements to actual results or to changes in our expectations, except as required by law.

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