SOURCE: American Power Group Corporation

American Power Group Corporation

February 24, 2015 09:00 ET

American Power Group Maintains Industry Leadership Role With Second Intermediate Useful Life Submission Approval From EPA

2012-2010 Detroit Diesel DD15 SCR Engine Approval Expands Dual Fuel Opportunities in the Heavy Duty Market; 6 Popular Detroit Diesel DD15 Engine Families Added to Previously Approved 28 Volvo/Mack Engine Families

LYNNFIELD, MA--(Marketwired - Feb 24, 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 Intermediate Useful Life ("IUL") engines:

  •  Detroit Diesel DD15 
    • 14.8L 
    • (2012 to 2010)

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. The 6 additional engine families are APG's second dual fuel conversion IUL approval covering Selective Catalyst Reduction ("SCR") engine technology, which meets or exceeds the current 2010 EPA OEM certified engine emission standards. In December 2014, APG announced its initial 28 IUL approvals on the Volvo/Mack engine families with 3 approvals relating to SCR engines. APG leads the industry with 34 IUL approvals and 456 OUL approvals covering six of the top OEM engine platforms.

Lyle Jensen, American Power Group Corporation's President and Chief Executive Officer, stated, "We are pleased to be able to accelerate the timing of our test approval cycles and demonstrate the engine compliance diversity of our dual fuel technology. Except for APG's IUL-aged approvals, the U.S. heavy-haul trucking niche does not have a viable natural gas engine option for 400 to 600 horsepower Class 8 trucks. During 2014, several dedicated natural gas engine OEM's 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. Heavy-haul fleet owners and natural gas fueling suppliers who were counting on having a 13-liter and 15-liter natural gas engine solution are showing more interest in the benefits of converting existing high-horsepower diesel engines to operate on APG's dual fuel solution."

Mr. Jensen added, "The IUL addressable market is strategically important because it allows APG access to the medium to large fleet owners who operate 300+ vehicles and keep their trucks 4-5 years. Through our market development experiences, we have learned IUL approvals are critical to getting in front of these larger national and regional fleet operators and have contacted several notable candidate fleets in anticipation of these new approvals. Our WheelTime Network partners have been Detroit Diesel parts and service dealers for years and already have established business relationships with many of the identified fleet owners on our target list. We have secured a list from R.L. Polk of approximately 5,700 U.S. registered DD15 owners representing over 54,000 trucks for truck model years 2010-2013. We estimate 600,000 - 700,000 Class 8 trucks fall into the total IUL designation."

Mr. Jensen concluded, "A significant environmental benefit of our dual fuel solution that continues to be validated during our IUL testing is our ability to measurably reduce nitrous oxides ('NOx') below the EPA 2010 emission standards. There is an increased interest level in technologies that reduce diesel-related NOx emissions. We believe an OEM SCR engine operating with APG's dual fuel technology produces some of the lowest NOx readings in the industry and may be considered for additional Federal, State, and corporate sustainability emission reduction funding opportunities."

About American Power Group Corporation
American Power Group's alternative energy subsidiary, American Power Group, Inc., provides a cost-effective patented Turbocharged Natural Gas® conversion technology for vehicular, stationary and off-road mobile diesel engines. American Power Group's dual fuel technology is a unique non-invasive energy enhancement system that converts existing diesel engines into more efficient and environmentally friendly engines that have the flexibility to run on: (1) diesel fuel and liquefied natural gas; (2) diesel fuel and compressed natural gas; (3) diesel fuel and pipeline or well-head gas; and (4) diesel fuel and bio-methane, with the flexibility to return to 100% diesel fuel operation at any time. The proprietary technology seamlessly displaces up to 75% of the normal diesel fuel consumption with the average displacement ranging from 40% to 65%. The energized fuel balance is maintained with a proprietary read-only electronic controller system ensuring the engines operate at original equipment manufacturers' specified temperatures and pressures. Installation on a wide variety of engine models and end-market applications require no engine modifications unlike the more expensive invasive fuel-injected systems in the market. See additional information at: www.americanpowergroupinc.com.

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 our dual fuel conversion business has lost money in the last five 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, 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 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.

Contact Information

  • Media Information Contact:
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    Investor Relations Contacts:
    Chuck Coppa
    CFO
    American Power Group Corporation
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    Mike Porter
    Porter, LeVay, & Rose, Inc.
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