SOURCE: American Power Group Corporation
LYNNFIELD, MA--(Marketwire - Oct 4, 2012) - American Power Group Corporation (OTCQB: APGI) announced today that its subsidiary, American Power Group, Inc. ("APG"), has received a follow-on order from CONSOL Energy's gas division for three additional dual fuel engine conversions on a second drilling rig in the Marcellus Shale.
CONSOL Energy is a publicly owned Pittsburgh-based producer of coal and natural gas that has active exploration and production operations in the Marcellus and Utica shales.
APG is working in collaboration with CONSOL Energy and Linde North America to utilize liquefied natural gas (LNG) with APG's Turbocharged Natural Gas™ technology to lower CONSOL Energy's cost of on-site power and lower their emissions compared to dedicated diesel engines. APG successfully completed CONSOL Energy's first rig conversion in July of 2012 and expects to complete the second rig conversion during the next several months.
"We look forward to further verifying the expected cost savings and emissions reductions on two rigs, and then applying these benefits throughout our rig fleet," said Steve Winberg, CONSOL Energy's vice president of Research & Development.
"We see a bright future for LNG in dual fuel oil and gas applications," said Bryan Luftglass, head of strategic market and business development for Linde Energy Solutions. "We are delighted to be working with innovators such as APG and CONSOL Energy who are demonstrating leadership in utilizing this cutting-edge technology."
Lyle Jensen, American Power Group Corporation's President and Chief Executive Officer, stated, "With LNG becoming a viable dual-fuel alternative to pipeline and conditioned well-head gas, we are well positioned to expand our product offerings to a vast majority of the rigs in operation today. The number of APG oil and gas dual fuel engine conversions grew ten-fold in our first year of production, exceeding $2 million in cumulative revenue. We expect the Marcellus and Utica shale regions to provide significant growth opportunities for our technology in the coming years."
About American Power Group Corporation
American Power Group's alternative energy subsidiary, American Power Group, Inc., provides a cost-effective patented Turbocharged Natural Gas™ conversion technology for aftermarket vehicular, stationary and off-road mobile diesel engines. American Power Group's dual fuel technology is a unique non-invasive energy enhancement system that converts existing diesel engines into more efficient and environmentally friendly engines that have the flexibility to run on: (1) diesel fuel and liquefied natural gas; (2) diesel fuel and compressed natural gas; (3) diesel fuel and pipeline or well-head gas; and (4) diesel fuel and bio-methane, with the flexibility to return to 100% diesel fuel operation at any time. The proprietary technology seamlessly displaces up to 80% of the normal diesel fuel consumption with the average displacement ranging from 40% to 65%. The energized fuel balance is maintained with a proprietary read-only electronic controller system ensuring the engines operate at original equipment manufacturers' specified temperatures and pressures. Installation on a wide variety of engine models and end-market applications require no engine modifications unlike the more expensive invasive fuel-injected systems in the market. See additional information at: www.americanpowergroupinc.com.
Caution Regarding Forward-Looking Statements and Opinions
With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements and opinions, including, but not limited to, statements relating to new markets, development and introduction of new products, and financial and operating projections. These forward-looking statements and opinions are neither promises nor guarantees, but involve risk 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, results of future operations, difficulties or delays in developing or introducing new products and keeping them on the market, the results of future research, lack of product demand and market acceptance for current and future products, adverse events, product changes, the effect of economic conditions, the impact of competitive products and pricing, governmental regulations with respect to emissions, including whether EPA approval will be obtained for future products and additional applications, the results of litigation, factors affecting the Company's future income and resulting ability to utilize its NOLs, and/or other factors, which are detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 30, 2011 and the Company's quarterly reports on Form 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements and opinions, which speak only as of the date hereof. 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.