American Power Group (APG) has received follow-on purchase orders from two of its top U.S. customers for APG V5000 turbocharged natural gas systems and supporting compressed natural gas (CNG) fueling systems.
These new orders total over $600,000 and are expected to ship during the current quarter and into the company’s third fiscal quarter, bringing the two customers’ collective APG dual-fuel truck fleet to over 100 units.
“As evidenced by these orders, our vehicular efforts are benefiting from a recent congressional approval of an alternative fuel excise tax credit of $0.50 per gallon retroactive to 2015 and in place for 2016, which some fuel suppliers are passing on in the form of lower CNG and liquefied natural gas (LNG) pump prices,” says Lyle Jensen, CEO of APG. “In addition, a recent federal law change provides that LNG will be taxed on its BTU value, which reduces the federal fuel tax by $0.17/gallon.”
