APG Expands Demo Truck Program For Class 8 Heavy Haul Vehicles

Rhea-AI Summary

American Power Group (APGI) has expanded its demonstration program for Class 8 heavy haul trucks due to rising diesel prices exceeding $5 per gallon. The program includes a 2014 Freightliner CA125 with a Cummins ISX 15L engine and a 2015 Freightliner CC132 with a Detroit Diesel DD15 engine, both equipped with APG’s patented V6000 Dual Fuel System. This system allows trucks to operate on a mix of diesel and domestic natural gas, providing cost savings and emission reductions. CEO Chuck Coppa emphasized the potential to displace about 19.5 billion gallons of diesel consumption annually.

Positive

• Expansion of the demo truck program could boost market interest and adoption of dual fuel technology.
• Potential for significant fuel savings as operators can replace 50% of diesel with cheaper natural gas.
• APG's technology aligns with ESG goals, promoting lower emissions and compliance with regulations.

Negative

• Previous losses in the dual fuel conversion business raise concerns about profitability.
• Dependence on third parties for manufacturing and distribution may impact product availability.
• Risks associated with converting quotes into actual orders due to market demand uncertainty.

American Power Group Expands Demo Truck Program For Class 8 Heavy Haul Vehicles In Wake of Dramatic Increases in Diesel and Oil Prices

Cummins ISX 15L and Detroit Diesel DD15 Engines Available To Demo

ALGONA, IA / ACCESSWIRE / March 9, 2022 / American Power Group Corporation ("APG") (OTC PINK:APGI) today announced the expansion of their Class 8 heavy duty truck demonstration program to include a 2014 Freightliner CA125 Cascadia day cab equipped with a Cummins ISX 15L (450 HP) diesel engine, APG's V6000 Dual Fuel System, Eaton 10 speed transmission and a 170" wheelbase. APG also has a 2015 Freightliner CC132 Coronado sleeper cab equipped with a Detroit Diesel DD15 (505HP/1850 lb-ft) diesel engine, APG's V6000 Dual Fuel System, an Eaton 13 speed transmission and a 286" wheelbase as pictured below available. In addition to APG-owned demonstration vehicles, APG will consider other demonstration programs for fleet operators to evaluate multiple dual fuel conversions on their existing fleets with minimal up-front costs.

The V6000 Dual Fuel System is a patented upgrade technology for existing diesel engines, seamlessly introducing natural gas into the induction system of the diesel engine while maintaining existing power and torque. APG's Dual Fuel System does not alter the OEM configuration or componentry and automatically returns the engine to 100% diesel operation should the natural gas supply be depleted, making it a preferred alternative energy choice for existing fleets.

With current diesel pump prices in the $5+ per gallon range, the ability to displace 50% of diesel consumption with cleaner burning and less expensive domestic natural gas, including renewable natural gas ("RNG"), provides operators the ability to realize meaningful net annual fuel savings, shorter ROIs, enhanced ESG compliance and significant emission reductions including NOX and CO2.

Chuck Coppa, APG's CEO/CFO stated, "There are approximately 2 million late-model Class 8 diesel trucks operating in the U.S. and assuming each drives 125,000 miles per year, at 6.5 miles per gallon that equates to approximately 39 billion gallons of diesel consumption. APG's dual fuel solution deployed in this market at a 50% displacement rate would eliminate the need for approximately 19.5 billion gallons, which due to refining practices would eliminate 4.5 million barrels of imported oil per day and replace it with readily available, domestic natural gas and/or renewable natural gas."

For additional information on the demo truck program, please contact American Power Group headquarters at 866-994-7697.

About American Power Group Corporation

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. See additional information at: www.americanpowergroupinc.com

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+ 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+ 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/692333/APG-Expands-Demo-Truck-Program-For-Class-8-Heavy-Haul-Vehicles

FAQ

What is the new demonstration program announced by American Power Group (APGI)?

APGI has expanded its demonstration program for Class 8 heavy haul trucks, incorporating vehicles equipped with its V6000 Dual Fuel System.

How does the V6000 Dual Fuel System benefit truck operators?

It allows operators to displace up to 50% of diesel fuel with domestic natural gas, leading to lower fuel costs and reduced emissions.

What are the estimated fuel savings from using APGI's technology?

Using APGI's dual fuel system could potentially displace about 19.5 billion gallons of diesel annually.

Who commented on the potential impact of APGI's technology?

Chuck Coppa, CEO/CFO of APGI, highlighted the significant reduction in diesel consumption possible with their dual fuel solution.

What financial risks does APGI face amid the expansion of its demo truck program?

APGI's dual fuel conversion business has incurred losses in previous years and may struggle to convert quotes into actual orders.