What’s not to like about lower fuel costs and reduced emissions?
What more could you want than lower gas prices and fewer pollutants?
In a time when diesel costs are higher than ever, the American Power Group Inc. is optimistic that its dual-fuel strategy for heavy-duty trucking will raise interest among owner-operators and small fleets.
The $25,000 improvement swaps out one of a Class 8 tractor's two diesel tanks for a natural gas tank, saving money at the pump and reducing emissions. Software is used to let the two fuels coexist peacefully.
According to APG, owner-operators and small fleets without the $250,000 budget for a new rig may find a solution in turbocharging natural gas in a diesel engine. APG currently holds more than 500 Environmental Protection Agency certifications for the use of its technology (OTC PINK: APGI).
“Our offer is a better value for your money”, according to APG President, CEO, and CFO Chuck Coppa. You can choose between spending $250,000 on a single natural gas truck or $10 of the systems you already purchased for more than $100,000.
The truck from American Power Group is not a hybrid vehicle.
Although it is not a hybrid vehicle, APG's recognizable V6000 Dual Fuel System is. It's also not a glider that conceals an old powertrain beneath the truck frame. It is a niche product in a world where battery-electric trucks with zero tailpipe emissions and genuine zero-emission hydrogen fuel cells are more alluring and garner more attention.
Electric infrastructure is lacking, which gives APG more possibilities.
We believe we have a 20-year run here, said Lyle Jensen, a former president and CEO of APG and advisor to the board on business growth. "I think diesel will last a lot longer than people think," he said.
The following astounding statistics are provided by APG based on the age of the upgraded engine:
- 30 to 50% decrease in nitrogen dioxide.
- 40 to 70% decrease in particulate matter.
- 80 to 99% decrease in carbon monoxide.
If diesel use is decreased by 25% to 30%, APG seems to have a compelling case for fleets who cannot afford new equipment.
Its first demo truck is a 2015 Freightliner CC132 Coronado sleeper cab. Algona, Iowa is the location of APG. A Detroit Diesel DD15 engine generates 1,850 lb. ft. of torque and 505 hp.
Sapphire Gas Solutions, which ships RNG, liquified natural gas, and compressed natural gas across the U.S., reported using APG's modified Coronado to save between 25% and 30% on net fuel expenses.
How the American Power Group arrangement functions
Modifications to diesel engines are forbidden by the EPA for the first 24 months after purchase. As a result, APG naturally concentrates on the market for used engines. It aims to attract first- and second-generation business owners.
In order to safely boost the air already being fed to the engine, APG created a computerized design that adds 2 to 3 percent natural gas to the air induction system before the turbocharger starts up. The spinning air enters the compression compartment to increase energy output at the time of combustion.
The technology's key selling point is that it preserves all of the diesel power while using only around half as much. Dedicated natural gas systems perform less well because natural gas has a lower power output. One solution is a 10 to 20% reduction in emissions.
Cummins Inc., a well-known industry leader in natural gas engines, announced that it would not embark on a project of a similar sort. Coincidentally, Hyliion Holdings, a producer of natural gas-electric powertrains, and Cummins are working together to verify Cummins' 12-liter natural gas engine for use in Hyliion's Hypertruck ERX, which is expected to launch in 2023.
Incredibly difficult challenge
Puneet Jhawar, general manager of Cummins' natural gas division, told FreightWaves that it is "extremely tough to actually build a system that does both diesel and natural gas" due to the numerous pieces needed for the various fuel systems.
APG concedes that the complexity of truck engines and the multi controller area network message-based protocols intended to correctly connect electronic control units with one another based on priority have made its development job more difficult.
According to Jensen, in order to guarantee quality and compliance, we must keep track of tens of thousands of signals.
The V6000 avoids causing problems for the diesel engine. APG successfully trains and certifies diesel technicians at larger enterprises to install the device.
Jensen reported that the engine control module (ECM) and regulators that make up the majority of this device have not received much maintenance. "There is basically no post-installation support. The maintenance of a diesel engine continues to take up the majority of your technician's work.
Diesel engine producers are responsible for their products in terms of warranties. Dual fuel technology means that any damage to the diesel engine is the responsibility of the company doing the conversion; APG specifically specifies this in all of its contracts. A second year of the warranty is optional and only lasts for one year.
The Future Path
Jensen led APG for eight years, which at times was difficult. He gave Coppa the CEO position in 2017. Coppa, who was CFO at the time, gave the Securities and Exchange Commission permission to delist APG in September 2018. Currently, the company is traded as a penny stock.
Since 2019, $3 million of the $5 million in investments made by Matthew Van Steenwyk, the company's chairman since 2021, have been made in it. Van Steenwyk controls a number of businesses that collectively own 58% stake in the company. He was in charge of a $2.46 million, $96.4 million private placement with present investors in April.
"We believe we have to show ourselves," Jensen said in reference to being regarded seriously as a replacement fuel for the current diesel fleets. We soon came to the conclusion that we would not be a new truck OEM manufacturer. However, we believed we had a fantastic opportunity to utilize already-in-use diesel engines and create a strategy for alternative fuels.
Current Market
According to Coppa, the technology has been in use for more than ten years, so it's hardly a scientific experiment. "There are innumerable instances of individuals who have tried to do this but have completely failed. Over the past 12 years, we have focused a lot of attention on the stationary side of the business, which has mostly been in the oil and gas industry.
Power plants and other installations are one problem. A business case for selective catalytic reduction (SCR) engines with a market addressable of 2 million engines, however, appears alluring.
According to Jensen, there are currently 2 million SCR engines in service that are 2012 or newer. Every year, 200,000 more SCR diesel trucks are introduced to the market. I simply need to go test and verify those engine models. I also always have access to unfinished engines.
Displaying the dual fuel items
A 2014 Freightliner CA125 Cascadia day cab with a 15-liter, 450-horsepower Cummins ISX diesel engine will serve as the second demonstration vehicle for APG. The Permian Basin, which has an adequate supply of water, sand, and fracking fluid, may be the final destination.
According to Jensen, the principal route is the oil and gas industry in Oklahoma and Texas, which makes use of oil tankers. Our next stop will be there thanks to the sand, oil, and gas being carried there.
The dairy industry is another intriguing sector given the tanker and feed sectors as well as the fact that dairy animal waste is a large source of RNG.
We now have the second-cleanest decarbonation fuel of all because of dairy RNG, he asserted.
APG will deliver its sales presentation to the National Star Route Mail Contractors Association without any trucks in Sacramento, California. The association, which has a long-distance mail transit agreement with the USPS, consists of about 1,700 firms.
Is APG a practical choice for reducing emissions and conserving fuel, in the end? Other technologies, such opposed piston two-stroke engines and cylinder deactivation for NOx reduction, are listed on the innovation map.
"Many solutions are developing that will challenge our industry's ability to create, test, and implement proven and inexpensive solutions, whether in production or retrofitted," claims Mike Roeth, executive director of the North American Council for Freight Efficiency. We see the next ten years as a true "complex midsection," full of opportunity but not without challenges.
