SOURCE: American Power Group Corporation

American Power Group Corporation

August 13, 2014 09:00 ET

American Power Group Partners With Marine Fuel Conversions, LLC To Evaluate Dual Fuel Marine Applications and Opportunities in Europe

Pending International Maritime Organization Emission Reduction Rule Prompts Significant Dual Fuel Interest; January 1, 2015 Rule Requires Significant Sulfur Content Reduction of Diesel Fuels

LYNNFIELD, MA--(Marketwired - Aug 13, 2014) - American Power Group Corporation (OTCQB: APGI) announced they will be working with Marine Fuel Conversions, LLC ("MFC") to evaluate potential applications and opportunities for APG's dual fuel solution, specifically in marine applications including on-board prime and ancillary power as well as port based stationary power applications.

MFC, which is based in Glasgow, Scotland, will be responsible for funding and coordinating all feasibility and beta testing activities necessary to determine how APG's innovative Turbocharged Natural Gas® dual fuel system can be commercialized in Europe for marine applications. The feasibility/beta testing period is anticipated to run between nine to fifteen months. MFC will be utilizing Scotland's University of Strathclyde's Department of Naval Architecture & Marine Engineering Group to lead the technical feasibility/commercialization effort and will be working with Scottish Enterprise's Aerospace, Defense and Marine Industry Group regarding potential funding sources. Upon successful completion of the feasibility study and beta tests, MFC has been granted a multi-year license to sell and install APG's Turbocharged Natural Gas® dual fuel solution in select marine applications and in select European countries.

Tom Galvin, Founder and MFC's Chief Executive Officer, stated, "We believe that APG's dual fuel solution is the most cost effective and best dual fuel conversion technology in the market today. We will be working with some of the world's best minds in the area of marine engine design, modeling and engineering on this initiative. I have successfully worked for several years with both the University of Strathclyde as well as Scottish Enterprise to develop and bring new innovative technologies to Scotland. Sir James McDonald, PhD, Dean of the University of Strathclyde is an internationally renowned energy expert with a proven record of developing ventures between academia, business and the government. He is also the Co-Chairman of Scottish Enterprise along with Scottish Prime Minister Alex Salmond."

Lyle Jensen, American Power Group Corporation's Chief Executive Officer, stated, "We are excited to be working with Tom and his team to explore the multiple opportunities for our dual fuel solution in marine applications. We also think the timing is right for forming this relationship as it has been recently reported that as of January 1, 2015, ships sailing on US, Canadian and European routes will be compelled to burn much cleaner and more expensive diesel fuel under new environmental regulations adopted by the International Maritime Organization (IMO). North America and Northern-Europe fall within the so-called Emission Controlled Areas (ECAs) which encompass the Baltic Sea, the North Sea, the English Channel and areas within 200 nautical miles of the US and Canadian shores. It has been estimated that carriers will pay up to 70% extra for the required low-sulfur diesel fuel in the ECA areas compared to current bunker oil fuels."

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 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 for the year ended September 30, 2013 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

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