APG Receives New Conversion Orders from Caribbean Power

APG Receives New Conversion Orders From the Caribbean

American Power Group Corporation announced their subsidiary, American Power Group Inc., has received an order from Caribbean Power Group S.R.L, its authorized dealer and certified installer in the Dominican Republic, to convert 38 heavy-duty trucks to operate on APG’s Turbocharged Natural Gas® dual fuel system.

Deliveries are scheduled for the June/July 2014 timeframe. While the end customer and the exact value of the order was not disclosed for proprietary reasons, the end customer is a global leader in the building materials industry with a presence in more than fifty countries and a strong commitment to integrating sustainability initiatives into their global business strategy.

Milton Zarzuela, President of Caribbean Power Group commented, “We have been working with this customer on the pilot order for over eighteen months to validate field performance, economic payback, and the emission reduction benefits of APG’s dual fuel solution. I, along with my project manager Giovanni Caballero congratulate our technical team on their effort and persistence in obtaining this order. Based on data obtained during this initial field evaluation phase, our customer estimates a potential aggregate annual net fuel savings of over U.S. S1.0 million per year from the conversion of these 38 units.” Zarzuela added, “Our customer has verbally indicated they will look to converting more of their local 200 truck fleet to APG’s dual fuel system over the coming year. We are also considering entering natural gas fuel supply agreements with our client’s suppliers, who operate more than 700 trucks as an incentive to begin adoption of APG’s dual fuel solution. We estimate that there are over 20,000 heavy duty trucks currently operating in the Dominican Republic and believe we now have a blueprint on how to expand natural gas into our domestic heavy-duty truck market.” 

The Dominican Republic’s biggest power company, AES Dominicana, reached a milestone in April with the docking of the 100th LNG tanker. The LNG delivery from Trinidad & Tobago brings the total LNG received since 1997 to 12 million cubic meters. In the keynote speech, the President of AES Dominicana reported the country has saved around U.S. $1.8 billion with the use of natural gas since 2004 with natural gas positioning itself as a viable alternative fuel to diversify the national energy matrix due to its efficiency, environmental advantage and competitive price. As an environmental benefit, the executive noted that the use of natural gas had helped the country reduce C02 by more than 300,000 tons per year.

The LNG terminal, located in the AES Andres energy park in Boca Chica is the exclusive point of entry for natural gas into the country and can store up to 175,000 cubic meters of LNG. At the terminal, LNG can also be converted to CNG and transported by truck throughout the country. The current CPG order is for CNG conversions.

Lyle Jensen, American Power Group Corporation’s Chief Executive Officer stated, “It is very encouraging to see government and industry come together in a country of 10 million people to promote the use of natural gas and become the 57th largest importer of LNG in the world according to the CIA World Factbook. APG is proud to have our dual fuel technology become another piece of the puzzle in the quest to maximize the use of natural gas to further reduce harmful emissions.”

Jensen added, “We applaud the tenacity and leadership of Caribbean Power Group for managing through an effective and lengthy evaluation and approval process resulting in the largest single customer production order we’ve had to date. As a result of the positive results of our dual fuel solution and the groundwork laid by the Caribbean Power Group team locally, we are in pilot order discussions with several other locations of this global leader in both Central and South America.”

Press Release, June 13, 2014

 

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