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APG to evaluate dual-fuel marine opportunities in Europe

LNG Industry,

American Power Group has partnered with Marine Fuel Conversions, LLC to evaluate dual-fuel marine applications and opportunities in Europe.

The two companies will work together to evaluate potential applications and opportunities for APG's dual-fuel solution, 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 commercialised in Europe for marine applications.

Strathclyde University

The feasibility/beta testing period is anticipated to run between 9-15 months. MFC will use the University of Strathclyde's Department of Naval Architecture & Marine Engineering Group to lead the technical feasibility/commercialisation effort and will work with Scottish Enterprise's Aerospace, Defense and Marine Industry Group regarding potential funding sources.

Following 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.

Marine Fuel Conversions

Commenting on the venture, Tom Galvin, MFC's CEO, stated: "We believe that APG's dual-fuel solution is the most cost effective and best dual-fuel conversion technology in the market today. We will be working with some of the world's best minds in the area of marine engine design, modeling and engineering on this initiative. I have successfully worked for several years with both the University of Strathclyde as well as Scottish Enterprise to develop and bring new innovative technologies to Scotland. Sir James McDonald, PhD, Dean of the University of Strathclyde is an internationally renowned energy expert with a proven record of developing ventures between academia, business and the government. He is also the Co-Chairman of Scottish Enterprise along with Scottish Prime Minister Alex Salmond."

American Power Group

Lyle Jensen, APG Corporation's CEO, added: "We are excited to be working with Tom and his team to explore the multiple opportunities for our dual-fuel solution in marine applications. We also 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 Organisation (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."

Adapted from press release by Katie Woodward

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