APG Gains Dual-Fuel Orders From U.S. Regulatory Changes
The changing regulatory climate in the U.S. has contributed in part to American Power Group Corporation’s subsidiary, American Power Group Inc. (APG), receiving follow on purchase orders from two of its top U.S. customers, the company explained. These new orders, for APG V5000 Turbocharged Natural Gas® Systems and supporting CNG fueling systems, are valued at more than $600,000.
Lyle Jensen, American Power Group Corporation’s Chief Executive Officer stated, “As evidenced by these orders, our vehicular efforts are benefiting from a recent Congressional approval of an alternative fuel excise tax credit of $0.50 per gallon retroactive to 2015 and in place for 2016 which some fuel suppliers are passing on in the form of lower CNG and LNG pump prices. In addition, a recent federal law change provides that LNG will be taxed on its BTU value which reduces the federal fuel tax by $0.17/gallon.”
Mr. Jensen added, “In these times of increasing federal, state and local regulatory pressure to reduce harmful emissions on multiple fronts, we are seeing an increasing number of fleets placing a much higher value on the significant emission reduction benefits of APG’s Turbocharged Natural Gas® technology than in the past. When APG’s V5000 system is installed on a 2010 and newer OEM SCR (selective catalyst reduction) engine, the average emission results are 50% below the current EPA/CARB NOx standards which is one of the lowest readings in the industry.”
Mr. Jensen concluded, “We are taking this emission reduction data directly to multiple state regulatory entities, especially in California, to show that APG’s dual-fuel solution is a proven and immediate solution for them to move closer to meeting their emission reduction mandates.”
APG expects to ship the product for these follow on orders during the current quarter and into the Company’s third fiscal quarter and will bring the two customers’ collective APG dual-fuel truck fleet to over one hundred units.
(Source: American Power Group Corporation)