The initial term of the agreement is five years.
Wesfarmers is also entitled to service the light and medium-duty vehicular market for compressed natural gas (CNG) and biogas applications.
Concurrent with signing the agreement, American Power Group International (APGI) received a purchase order for six additional vehicular conversions and certification training services that will be used to facilitate the training of Wesfarmers LNG’s personnel as Certified Trainers and Certified Installers of American Power Group (APG) products in Australia.
For this LNG vehicular application, APG’s dual-fuel aftermarket system converts diesel engines to function more efficiently and at a lower operating cost – based on current diesel and LNG prices, and subject to the particular vehicle characteristics and applicable driving conditions – by displacing up to 50 per cent of the normal diesel fuel consumption with LNG.
The system is non-invasive to the OEM engine and operates within all OEM performance controls with the flexibility to return to 100 per cent diesel operation at any time. APG’s dual-fuel conversion and emissions reduction systems have lower carbon monoxide, nitrogen oxide, and particulate matter emissions than equivalent 100 per cent diesel systems.
The introduction of natural gas does not impact diesel engine power or torque and will assist in extending the engine’s oil life as natural gas is a cleaner burning fuel compared to diesel.
GreenMan President and Chief Executive Officer Lyle Jensen said “We believe that a significant number of Australian vehicles will benefit from APG’s dual-fuel technology. This next step of installation training will enable Wesfarmers LNG to train and certify both in-house and approved third-party partners to safely and reliably install the dual-fuel system. We expect the training to be completed during October and will move into full-scale commercialisation shortly thereafter.”
