Marine Dual Fuel Potential in Europe under Spotlight

American Power Group Corporation (APG) will be working with Marine Fuel Conversions, LLC (MFC) to evaluate potential applications and opportunities for APG’s dual fuel solution in Europe, specifically in marine applications including on-board prime and ancillary power as well as port-based stationary power applications.

MFC, based in Glasgow, Scotland, will be responsible for funding and coordinating all feasibility and beta testing activities necessary to determine how APG’s Turbocharged Natural Gas dual fuel system can be commercialized in Europe for marine applications.

The feasibility/beta testing period is anticipated to run between nine to fifteen months. MFC will be utilizing Scotland’s University of Strathclyde’s Department of Naval Architecture & Marine Engineering Group to lead the technical feasibility/commercialization effort and will be working with Scottish Enterprise’s Aerospace, Defense and Marine Industry Group regarding potential funding sources.

Upon successful completion of the feasibility study and beta tests, MFC has been granted a multi-year license to sell and install APG’s Turbocharged Natural Gas dual fuel solution in select marine applications and in select European countries.

Lyle Jensen, American Power Group Corporation’s Chief Executive Officer, said: “We think the timing is right for forming this relationship as it has been recently reported that as of January 1, 2015, ships sailing on US, Canadian and European routes will be compelled to burn much cleaner and more expensive diesel fuel under new environmental regulations adopted by the International Maritime Organization (IMO).

North America and Northern-Europe fall within the so-called Emission Controlled Areas (ECAs) which encompass the Baltic Sea, the North Sea, the English Channel and areas within 200 nautical miles of the US and Canadian shores.

It has been estimated that carriers will pay up to 70% extra for the required low-sulfur diesel fuel in the ECA areas compared to current bunker oil fuels.”