SOURCE: American Power Group Corporation

American Power Group Corporation

October 13, 2015 09:53 ET

American Power Group Achieves New EPA Intermediate Useful Life Approval

13 Additional Cummins ISX 14.9L Families Approved Totaling an Industry Leading 487 EPA Approvals; Brings Total EPA Approvals for SCR-Equipped Engines to 31

LYNNFIELD, MA--(Marketwired - Oct 13, 2015) - American Power Group Corporation (OTCQB: APGI) announced today that its subsidiary, American Power Group, Inc. ("APG"), has received online notification from the U.S. Environmental Protection Agency ("EPA") that its recent Clean Alternative Fuel Vehicle and Engine Conversion Submission has been approved for the following additional Intermediate Useful Life ("IUL") engines:

Cummins ISX 14.9L 2013 to 2005

The submission utilized APG's V5000 Dual Fuel Turbocharged Natural Gas® technology which is required to meet specific design, componentry and emission compliance criteria per the EPA Final Rule 40CFR Parts 85 and 86. Thirteen Cummins ISX 14.9L engine families became APG's fourth IUL approval covering Selective Catalyst Reduction ("SCR") engine technology which meets or exceeds the current 2010 EPA OEM certified engine emission standards. APG leads the industry with 487 OUL and IUL approvals covering six of the top OEM engine platforms including and industry record 31 IUL approvals for 2013-2010 OEM engine families with SCR engine technology.

Lyle Jensen, American Power Group Corporation's President and Chief Executive Officer, stated, "We are pleased to add Cummins ISX15 late-model year engines to our list of previously EPA approved engines. The Cummins ISX15 enjoys a market leadership position in big-bore engines where retention of power and torque is critical. The U.S. heavy-haul trucking market does not have a viable natural gas engine option for 450HP to 600HP Class 8 trucks except for APG's dual fuel solution. During 2014, several dedicated natural gas engine OEMs cancelled or delayed their 13-liter and 15-liter natural gas engine development leaving a significant gap in the Class 8 natural gas engine coverage. With APG's Cummins ISX15, Detroit Diesel DD13/DD15, and Volvo/Mack D13 IUL approvals, we fill in that gap with a natural gas solution that does not compromise power. We have identified over 20,000 registered Cummins ISX15 owners representing approximately 100,000 trucks for engine production years 2013-2010. This target list will be marketed through our natural gas supply partners and our authorized dealer network. We estimate there are 600,000 - 700,000 Class 8 trucks that fall into the total eligible IUL designation."

Mr. Jensen concluded, "In the high horsepower truck markets, APG's dual fuel system displaces more diesel fuel per invested dollar than any other natural gas engine technology. A fleet owner can purchase one new dedicated 11.9L natural gas truck for approximately $180,000 and displace around 18,000 gallons of diesel fuel per year. For the same $180,000 investment, a fleet owner can convert six of his existing high-horsepower diesel tractors to dual fuel and displace on average 55%-60% or 60,000 gallons, of diesel fuel per year which is 3.3 times higher diesel displacement per invested dollar."

About American Power Group Corporation
American Power Group's subsidiary, American Power Group, Inc. provides cost effective products and services that promote the economic and environmental benefits of our alternative fuel and emission reduction technologies. Our patented Turbocharged Natural Gas® Dual Fuel Conversion Technology is a unique non-invasive software driven solution that converts existing vehicular and stationary diesel engines to run concurrently on diesel and various forms of natural gas including compressed natural gas, liquefied natural gas, conditioned well-head/ditch gas or bio-methane gas with the flexibility to return to 100% diesel fuel operation at any time. Depending on the fuel source and operating profile, our EPA and CARB approved dual fuel conversions seamlessly displace 45% - 65% of diesel fuel with cleaner burning natural gas resulting in measurable reductions in nitrous oxides (NOx) and other diesel-related emissions. Through our Trident Associated Gas Capture and Recovery Technology, we provide oil and gas producers a flare capture service solution for associated gases produced at their remote and stranded well sites. These producers are under tightening regulatory pressure to capture and liquefy the flared gases at their remote and stranded well sites or face significant oil output reductions. With our proprietary Flare to Fuel™ process technology we can convert these captured gases into natural gas liquids ("NGL") which can be sold as heating fluids, emulsifiers, or be further processed by refiners. Given pending federal methane capture regulations, we anticipate our next generation NGL processing systems will have the capability to convert the residual flared methane into pipeline quality natural gas that can be sold for a variety of dedicated and dual fuel vehicular, stationary, industrial and household uses. See additional information at: www. 

Caution Regarding Forward-Looking Statements and Opinions
With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements and opinions, including, but not limited to, statements relating to new markets, development and introduction of new products, and financial and operating projections. These forward-looking statements and opinions are neither promises nor guarantees, but involve risk and uncertainties that may individually or mutually impact the matters herein, and cause actual results, events and performance to differ materially from such forward-looking statements and opinions. These risk factors include, but are not limited to, the fact that, if the conversion conditions are not satisfied, the Subordinated Contingent Convertible Promissory Notes will not automatically convert into equity securities and we may be required to repay the principal and interest thereon, our dual fuel conversion business has lost money in the last six consecutive fiscal years, the risk that we may require additional financing to grow our business, the fact that we rely on third parties to manufacture, distribute and install our products, we may encounter difficulties or delays in developing or introducing new products and keeping them on the market, we may encounter lack of product demand and market acceptance for current and future products, we may encounter adverse events economic conditions, we operate in a competitive market and may experience pricing and other competitive pressures, we are dependent on governmental regulations with respect to emissions, including whether EPA approval will be obtained for future products and additional applications, the risk that we may not be able to protect our intellectual property rights, factors affecting the Company's future income and resulting ability to utilize its NOLs, the fact that our stock is thinly traded and our stock price may be volatile, the fact that we have preferred stock outstanding with substantial preferences over our common stock, the fact that the conversion of the preferred stock and the exercise of stock options and warrants will cause dilution to our shareholders, the fact that we incur substantial costs to operate as a public reporting company and other factors that are detailed from time to time in the Company's SEC reports, including the report on Form 10-K/A for the year ended September 30, 2014 and the Company's quarterly reports on Form 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements and opinions, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements and opinions that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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