American Power Group Signs Class 8 Dual Fuel Marketing Agreement with Nat G(R) CNG Solutions, LLC

Rhea-AI Summary

American Power Group Corporation (APG) has signed a collaborative agreement with Nat G® CNG Solutions to market and service APG's low carbon V6000 Dual Fuel diesel engine conversion solutions for heavy-duty Class 8 trucks. Nat G® is a leading provider of alternative fuel systems, and their primary service coverage area includes Texas, Oklahoma, New Mexico, and Louisiana.

Positive

• APG's collaboration with Nat G® will help advance the adoption of their V6000 Dual Fuel Technology in a key alternative fuel region of the United States.
• The four-state coverage area listed for Nat G® has favorable diesel to natural gas price spreads, which can generate high net alternative fuel savings of 11% to 17% over 100% diesel usage.
• Operating APG's Dual Fuel System at interstate highway diesel displacement rates of 55%-60% can generate estimated net fuel savings of 11% to 17%.
• 58% of the truck stops surveyed in the coverage area were selling a B20 biodiesel blend, further reducing the dual fuel carbon footprint for Class 8 trucking.

Negative

• None.

Increase Market Awareness of APG's Next Generation of Low Carbon Dual Fuel Solutions

ALGONA, IA / ACCESSWIRE / June 7, 2023 / American Power Group Corporation ("APG") (OTC PINK:APGI) announced today they have signed a collaborative Vehicular Dealer/Installer Agreement with Nat G^® CNG Solutions, LLC (Nat G^®) to market and service APG's next generation of low carbon V6000 Dual Fuel diesel engine conversion solutions for existing heavy-duty Class 8 trucks.

Headquartered in Houston, Texas, Nat G^® is a leading provider of alterative fuel systems serving public and private fleet operators with a wide range of vehicle sizes ranging from light-duty carpool vehicles to long-haul Class 8 tractors. Their Houston CNG/RNG and Propane Conversion Center is fully licensed by the Texas Railroad Commission and is a Ford Factory Qualified Vehicle Modifier (Ford QVM Installer) with CNG/RNG and Propane Certified Technicians. Regarding natural gas fueling tanks, Nat G^® is a Hexagon Agility Approved Service Provider (ASP) and a CSA Group qualified natural gas cylinder inspector. Nat G^® also has experience building and servicing natural gas refueling facilities. Their primary service coverage area includes Texas, Oklahoma, New Mexico and Louisiana.

Chuck Coppa, APG's CEO/CFO stated, "We look forward to working with Nat G^® to advance adoption of APG's V6000Dual Fuel Technology in a key alternative fuel region of the United States. Texas is an anchor state in the region with 25 different Interstate Highway routes and ranked as the #1 state in the U.S. with over 3,500 interstate miles to support Class 8 transportation. The heavy-haul industry requirements in the region are a perfect match for APG's V6000 Dual Fuel Solutions that can displace 50%-60% of diesel with lower cost and cleaner burning natural gas fuel without any loss of power or torque."

Mr. Coppa, added, "The four-state coverage area listed for Nat G^® also has some of the most favorable diesel to natural gas price spreads which generate the highest net alternative fuel savings in the U.S. A recent late-May fuel survey of Fast-Fill CNG and Diesel interstate truck stops located in Texas, Oklahoma and New Mexico show that operating APG's Dual Fuel System at interstate highway diesel displacement rates of 55%-60% would generate estimated net fuel savings of 11% to 17% over 100% diesel usage. Additionally, 58% of the truck stops surveyed were selling a B20 biodiesel blend that further reduces the dual fuel carbon footprint for Class 8 trucking. This is a ‘win-win' for both fleet economics and helping to meet the industry's Environmental, Social and Governance (ESG) sustainability objectives."

"APG's Dual Fuel Systems are a practical solution available TODAY that reduce emissions from existing diesel-powered fleets and lowers their carbon footprint dramatically when using renewable natural gas." Nat G^®'s CEO, Dennis Foose commented. Dudley Westlake, Vice President of Sales and Marketing for Nat G^® added, "We look forward to collaborating with APG to get the word out about the real-world benefits of Dual Fuel in our coverage area that can save on fuel costs as well as support the ESG objectives that public and private fleet operators, seek to meet."

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.

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 $4.5 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 $4.5 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/759701/American-Power-Group-Signs-Class-8-Dual-Fuel-Marketing-Agreement-with-Nat-GR-CNG-Solutions-LLC

FAQ

What is the collaborative agreement between APG and Nat G® about?

The collaborative agreement is about marketing and servicing APG's low carbon V6000 Dual Fuel diesel engine conversion solutions for heavy-duty Class 8 trucks.

Where is Nat G® headquartered?

Nat G® is headquartered in Houston, Texas.

What is the primary service coverage area for Nat G®?

The primary service coverage area for Nat G® includes Texas, Oklahoma, New Mexico, and Louisiana.

What are the estimated net fuel savings of using APG's Dual Fuel System at interstate highway diesel displacement rates of 55%-60%?

The estimated net fuel savings range from 11% to 17% over 100% diesel usage.

What percentage of truck stops surveyed in the coverage area were selling a B20 biodiesel blend?

58% of the truck stops surveyed were selling a B20 biodiesel blend.