SOURCE: GreenMan Technologies Inc.

GreenMan Technologies Inc.

June 14, 2012 09:00 ET

GreenMan Subsidiary Announces Favorable Emissions Results for Popular 2,500HP Diesel Pump Engine

Opens Up Opportunities for Hydraulic Fracturing Applications

LYNNFIELD, MA--(Marketwire - Jun 14, 2012) - GreenMan Technologies, Inc. (OTCQB: GMTI) announced that its American Power Group, Inc. (APG) subsidiary has recently met the emissions testing requirements necessary to begin selling our dual fuel conversion system for selected high-horsepower non-road compression ignition (NCRI) engine families, which are primarily used in multi-stage fracturing of shale gas and shale oil recovery.

Lyle Jensen, GreenMan's CEO, stated, "During the past fifteen months, we have gone from two initial installations in the oil and gas industry to over forty-five retrofits to-date. These successes have positioned APG as a market leader in retrofitting the most popular lower horsepower 1475 HP engines traditionally used by the major oil and gas exploration companies. As a result of this success and compelling economic returns, we have been approached by many of the top oil and gas exploration companies regarding our ability to retrofit the high horsepower engines. Today's announcement is an important milestone in our ongoing effort to increase revenue and our exposure to the oil and gas exploration industry. We now have a clear legal path to begin accepting pre-production test orders from customers on the newer diesel pump engines (IUL) being deployed."

Mr. Jensen added, "While a traditional oil and gas drilling site operates three diesel engines, a typical hydraulic fracturing site is comprised of up to twenty high horsepower diesel pumps like the one described above. Our initial target market is the estimated 2,000 new high horsepower diesel pumps being deployed by the hydraulic fracturing industry annually in the United States."

NCRI engines with less than 8,000 operating hours or ten years old are classified as Inside Useful Life (IUL) and are subject to the U.S. Environmental Protection Agency (EPA) emission standards. Current NRCI guidelines allow for installation and operation of alternative fuel equipped engines under full EPA Certification which we believe is not a viable economic alternative for the aftermarket. As an alternative to full certification, we have utilized the Memo 1A process whereby a company must demonstrate good, sound engineering judgment and have sufficient, reliable data which clearly demonstrates the conversion technology is emission compliant for that appropriate model year converted. Therefore, while no specific EPA approval is granted under this process, we are highly confident our emission results are defendable if audited.

Using the Memo 1A alterative process, emission testing was conducted on a popular 2,500HP IUL by a third-party per NRCI constant speed engine D2/ 5 Mode protocol in accordance with EPA 40 CFR Part 89 Appendix B and utilizing EPA 40 CFR 89 specified test equipment, equipment calibration, and test methodologies. The resulting emission levels of APG's dual fuel system were lower than the EPA Tier 2 emission standards in effect for the applicable tested engine.

About GreenMan Technologies

GreenMan's alternative energy subsidiary, American Power Group, Inc., provides a cost-effective patented Turbocharged Natural Gas™ conversion technology for aftermarket diesel engines and diesel generators. 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 compressed natural gas; (2) diesel fuel and liquefied 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 80% 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 engine 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.greenman.biz and 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, results of future operations, difficulties or delays in developing or introducing new products and keeping them on the market, the results of future research, lack of product demand and market acceptance for current and future products, adverse events, product changes, the effect of economic conditions, the impact of competitive products and pricing, governmental regulations with respect to emissions, including whether EPA approval will be obtained for future products and additional applications, the results of litigation, factors affecting the Company's future income and resulting ability to utilize its NOLs, and/or other factors, which 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, 2011 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

  • Contacts:
    Chuck Coppa
    CFO
    or
    Lyle Jensen
    CEO
    GreenMan Technologies
    781-224-2411

    Investor Relations Contacts:
    John Nesbett or Jennifer Belodeau
    Institutional Marketing Services (IMS)
    203-972-9200