American Power Group's Initial V6000 Dual Fuel Demo Truck Test Yields An Impressive 60% Diesel Displacement Rate Resulting in Net Fuel Savings of 25% to 30%

Rhea-AI Summary

American Power Group Corporation (APGI) announced positive results from a month-long test of its V6000 Dual Fuel system by Sapphire Gas Solutions. The test demonstrated a diesel displacement rate of 60%, yielding net fuel savings of 25% to 30%, equating to savings of approximately $1.40 to $1.70 per gallon compared to diesel at $5.30 in Texas. The V6000 system could potentially eliminate between 500 to 610 metric tons of CO2 per vehicle annually. With around 2 million Class 8 diesel trucks in the U.S., the total CO2 reduction potential could reach 1 billion metric tons per year.

Positive

• Demonstrated a diesel displacement rate of 60%.
• Achieved net fuel savings of 25% to 30%, amounting to $1.40 to $1.70 per gallon.
• Potential for CO2 reduction of 500 to 610 metric tons per vehicle annually.
• Opportunity to impact 1 billion metric tons of CO2 reduction across U.S. fleets.

Negative

• Ongoing losses in the dual fuel conversion business in previous fiscal years.
• Dependence on third parties for manufacturing and distribution.
• Need for potential additional financing for business growth.
• Thinly traded stock may lead to price volatility.

ALGONA, IA / ACCESSWIRE / May 16, 2022 / American Power Group Corporation ("APG") (OTC PINK:APGI) today announced the results from a month-long test drive of APG's V6000 Dual Fuel system by Sapphire Gas Solution, ("Sapphire") a Conroe, Texas based industry leader in mobile RNG, LNG, and CNG services across the U.S. Sapphire has been using APGI's 2015 Freightliner CC132 Coronado Sleeper with a Detroit Diesel 505HP diesel engine upfitted with APG's new V6000 Dual Fuel system to pull heavy-haul LNG tankers with a combined truck/tanker load approximating 80,000 pounds across Texas.

Sam Thigpen, CEO of Sapphire Gas commented, "We have been impressed with the performance and results of operating APG's new V6000 Dual Fuel truck. Our drivers reported the truck "performed like a diesel engine with no difference in power or torque" while operating APG's Dual Fuel system and their new natural gas telematics system allowed us to validate a consistent on-road displacement rate of near 60% with an overall average route diesel displacement of approximately 50% when running on dual fuel. Based on our current fuel costs, this equates to an impressive 25% to 30% net fuel savings of $1.40 to $1.70 per gallon over 100% diesel fuel which is currently around $5.30/gallon in Texas. Based on these initial results and APG's low cost of conversion, we can now have a more productive discussion regarding dual fuel and our fleet."

Matt Van Steenwyk, APG's Chairman responded, "I am delighted, but not surprised to hear the positive feedback from Sapphire's month-long evaluation of our new V6000 Dual Fuel demo truck. We have repeatedly proven over the years that we can safely displace a high percentage of diesel fuel with LNG, RNG, CNG, or treated flare gas with no loss of power or torque on engines ranging from 400-600HP Class 8 diesel trucks to 1500-3000HP off-road generators and diesel pumps. Sapphire and the thousands of existing people and organizations that rely on diesel engines have a ‘ready now', inexpensive solution for the reduction of criteria pollutants and carbon emissions that costs less to operate and, when running on diary RNG, actually can turn the carbon clock backwards."

Chuck Coppa, APG's CEO/CFO stated, "With diesel prices continuing to soar, our ability to provide fleet operators with a 25% to 30% net fuel savings is significant. In addition, from a de-carbonization perspective, our V6000 dual fuel system displacing 50% to 60% of diesel consumption with domestically available RNG from dairy manure could eliminate between 500 to 610 metric tons of CO2 per year per vehicle and generate a significant negative Carbon Intensity Score (-104 to -145 gCO2e/mj)."

Mr. Coppa added, "With approximately 2 million late-model Class 8 diesel trucks operating in the U.S. and assuming an estimated CO2 reduction of 500 metric tons per truck per year that equates to the elimination of potentially 1 billion metric tons of CO2 reduction per year. With these third-party validated results, we have a real opportunity to take existing diesel fleets and convert them to low-carbon or even negative-carbon green fleets when using RNG today!"

American Power Group and Sapphire Gas Solutions will be attending and highlighting their dual fuel experience at the RNG Coalition Summit in Houston, TX on May 17-19, 2022. The APG V6000 Dual Fuel demo truck and Sapphire's LNG Tanker will be available to view on Tuesday May 17^th. For additional information on the demo truck program, please contact American Power Group headquarters at 866-994-7697.

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

American Power Group's subsidiary, American Power Group Inc. provides cost effective dual fuel engine solutions to help accelerate an alternative fuel low-carbon future. Our patented Turbocharged Natural Gas® Dual Fuel Conversion Technology is a unique hardware and software solution that can enable existing high-horsepower vehicular and stationary diesel engines to safely displace a significant percentage of diesel with various forms of clean burning natural gas including low-carbon and negative-carbon renewable natural gas (RNG), captured flare-stack methane gas, conditioned well-head gas, bio-methane gas, compressed natural gas (CNG) and liquid natural gas (LNG). APG's dual fuel solution provides users with a proven technology to meet their Environmental, Social and Corporate Governance ("ESG") objectives by lowering criteria pollutants and greenhouse gas emissions.

About Sapphire Gas Solutions (www.sapphiregassolutions.com)

Sapphire Gas Solutions, Conroe Texas, is a turnkey infrastructure services and equipment provider to customers in the utility, pipeline, commercial & industrial, and RNG markets. An industry leader in mobile RNG, LNG, and CNG services across the United States, our mission is to ensure safe delivery of various forms of mobile natural gas when pipeline infrastructure is constrained or not available. From initial procurement to remote monitoring, Sapphire Gas offers the highest level of customer service to every client, regardless of the industry or application.

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 $5 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 $5 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

View source version on accesswire.com:
https://www.accesswire.com/701498/American-Power-Groups-Initial-V6000-Dual-Fuel-Demo-Truck-Test-Yields-An-Impressive-60-Diesel-Displacement-Rate-Resulting-in-Net-Fuel-Savings-of-25-to-30

FAQ

What are the results of APGI's V6000 Dual Fuel test drive?

APGI's V6000 Dual Fuel system showcased a diesel displacement rate of 60%, resulting in net fuel savings of 25% to 30%.

How much CO2 reduction can APGI's system achieve?

The V6000 system has the potential to eliminate between 500 to 610 metric tons of CO2 per vehicle annually.

What is the potential CO2 reduction for U.S. diesel fleets using APGI's technology?

If applied to the 2 million Class 8 diesel trucks in the U.S., it could potentially reduce CO2 emissions by 1 billion metric tons per year.

How does APGI's V6000 system affect fuel costs?

The system offers savings of approximately $1.40 to $1.70 per gallon compared to traditional diesel fuel costs.

What are the financial risks mentioned in APGI's announcement?

APGI's dual fuel conversion business has registered losses in prior fiscal years and may require additional financing to support growth.