American Power Group and Aemetis Biogas Conduct Multiple California Demonstrations of American Power Group's V6000 Low-Carbon Dual Fuel Solution for Class 8 Trucks

Rhea-AI Summary

American Power Group Corporation (APG) recently demonstrated its V6000 Low-Carbon Dual Fuel Solution in California, targeting truck fleet owners and regulatory agencies. The dual fuel solution can displace 50-60% of diesel fuel with renewable natural gas (RNG) from dairy manure, resulting in significant carbon emissions reduction. This technology is available for most diesel engines at a conversion cost of about $10,000. APG projects potential fuel savings of $1,500 to $2,250 monthly for operators using this solution, highlighting the feasibility of transitioning to cleaner fuels.

Positive

• Demonstrated V6000 Low-Carbon Dual Fuel Solution, attracting interest from truck fleet owners.
• Potential monthly fuel savings for operators of $1,500 to $2,250 with approximately 50% diesel displacement.
• Ability to significantly reduce CO2 emissions, with estimates of avoiding 500 to 700 metric tons of CO2 per vehicle annually.

Negative

• The dual fuel conversion business has previously lost money.
• The need for additional financing to grow the business may arise.
• Reliance on third parties for manufacturing, distribution, and installation poses risks.

ALGONA, IA / ACCESSWIRE / October 3, 2022 / American Power Group Corporation ("APG") (OTC PINK:APGI) and Aemetis, Inc. ("Aemetis") (AMTX), a renewable natural gas ("RNG") and renewable fuels company demonstrated APG's V6000 Low-Carbon Dual Fuel Solution last week in California for multiple truck fleet owners and operators who transport various products for Aemetis and other businesses in the region. In addition, the group presented to several regulatory agencies and policy makers in Sacramento. Based on existing and anticipated fleet interest, APG's 2014 Freightliner CA125 Cascadia day cab equipped with a Cummins ISX 15L diesel engine will be available for demo at Aemetis's Keyes, California renewable fuel production facility for the foreseeable future.

Matt Van Steenwyk, APG's Chairman noted, "We strongly believe our ability to utilize renewable natural gas, and renewable diesel represents a very compelling cost-effective carbon reduction solution available today for all fleets, especially those in California where approximately 98% of their heavy-duty fleets are diesel powered." Mr. Van Steenwyk added, "APG's V6000 dual fuel solution, displacing 50-60% of diesel consumption with RNG from dairy manure has been shown to produce an estimated Carbon Intensity ("CI") score of between -104 to -145 gC02e/MJ and avoid between 500 to 610 metric tons of CO2 per year per vehicle. When replacing fossil diesel fuel with renewable diesel the CI scores increase to between approximately -137 and -171 or up to 700 metric tons of avoided CO2, per vehicle per year. With an estimated 420,000 Class 8 trucks registered in California and countless more transiting California, the potential annual reduction is in the millions of metric tons of CO2 based on full adoption."

Chuck Coppa, APG's CEO/CFO stated, "APG's dual fuel solution is available for virtually any diesel engine with our heavy-duty truck conversion cost at approximately $10,000 plus the cost of a natural gas tank which would be determined based on route structure and refueling availability." Mr. Coppa added, "With estimated price spreads today between diesel and natural gas in the $2.00 to $3.00 range, an operator consuming 1,500 gallons of diesel fuel per month on long haul routes operating at a 50% displacement rate could generate an estimated net fuel savings per month of between $1,500 to $2,250.

Eric McAfee, Aemetis's Chairman and CEO stated, "We envision that APG's Dual Fuel Solution running Aemetis's RNG and ultimately renewable diesel can become an important transition step in California's evolution to cleaner air and their ultimate goal of achieving net-zero carbon emissions for the transportation industry. We believe APG's low-cost conversion price point in conjunction with our growing RNG volumes will help drive the adoption of reduced cost and lower emission fuels."

About American Power Group Corporation (www.americanpowergroupinc.com)

American Power Group's subsidiary, American Power Group Inc., ("APG"), provides cost-effective alternative fueling solutions for diesel engines to significantly reduce methane criteria pollutants and help accelerate a low-carbon future. APG's Dual Fuel conversion technology is a unique patented hardware and software solution that enables high-horsepower diesel engines to safely displace up to 65% of diesel fuel with natural gas. Engines equipped with APG's Dual Fuel technology can use renewable natural gas (RNG), compressed natural gas (CNG), liquefied natural gas (LNG), captured flare-stack methane and conditioned well-head gas resulting in lower cost, lower carbon, and lower criteria pollutant emissions. Additionally, APG's Dual Fuel conversion technology remains fully compatible with eligible biodiesel blends and renewable diesel fuels further reducing a diesel engine's carbon footprint and provide users with a proven regulatory compliant technology to meet their Environmental, Social and Corporate Governance ("ESG") objectives.

About Aemetis (www.aemetis.com)

Headquartered in Cupertino, California, Aemetis is a renewable natural gas, renewable fuel and biochemicals company focused on the acquisition, development and commercialization of innovative technologies that replace petroleum-based products and reduce greenhouse gas emissions. Founded in 2006, Aemetis has completed Phase 1 and is expanding a California biogas digester network and pipeline system to convert dairy waste gas into Renewable Natural Gas. Aemetis owns and operates a 65 million gallon per year ethanol production facility in California's Central Valley near Modesto that supplies about 80 dairies with animal feed. Aemetis also owns and operates a 50 million gallon per year production facility on the East Coast of India producing high quality distilled biodiesel and refined glycerin for customers in India and Europe. Aemetis is developing the Carbon Zero sustainable aviation fuel (SAF) and renewable diesel fuel biorefineries in California to utilize distillers corn oil and other renewable oils to produce low carbon intensity renewable jet and diesel fuel using cellulosic hydrogen from waste orchard and forest wood, while pre-extracting cellulosic sugars from the waste wood to be processed into high value cellulosic ethanol at the Keyes plant. Aemetis holds a portfolio of patents and exclusive technology licenses to produce renewable fuels and biochemicals.

Caution Regarding Forward-Looking Statements and Opinions

The matters described herein contain forward-looking statements and opinions, including, but not limited to, statements relating to outstanding dual fuel conversion quotes for $3 million + and our ability to turn these quotes into actual orders. These forward-looking statements and opinions are neither promises nor guarantees but involve risks 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 we may not be able to convert the $3 million+ of quotes into actual orders, the fact our dual fuel conversion business has lost money in prior fiscal years and 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 or 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, and the fact that the exercise of stock options and warrants will cause dilution to our shareholders. Readers are cautioned not to place undue reliance on these forward-looking statements and opinions, which speak only as of the date hereof. Except as required by law, 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.

Investor Relations Contact:

Chuck Coppa, CEO/CFO
American Power Group Corporation
781-224-2411
ccoppa@apgdualfuel.com

SOURCE: American Power Group Corporation

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FAQ

What is the V6000 Low-Carbon Dual Fuel Solution by APGI?

It is a technology that allows diesel engines to displace 50-60% of diesel fuel with renewable natural gas, aimed at reducing carbon emissions.

How much can operators save with APGI's dual fuel solution?

Operators could save between $1,500 to $2,250 per month when using the dual fuel solution at a 50% diesel displacement rate.

What are the environmental benefits of APGI's dual fuel solution?

The technology can reduce CO2 emissions by avoiding 500 to 700 metric tons per vehicle annually.

What is the conversion cost for APGI's dual fuel technology?

The conversion cost is approximately $10,000, plus the cost of a natural gas tank.

What risks does APGI face in its dual fuel business?

APGI's dual fuel business has a history of losses and may require additional financing, along with reliance on third-party manufacturing and distribution.