REDFORD, Mich., March 25 /PRNewswire-FirstCall/ -- Alternative
Fuel Technologies, Inc. (Pink Sheets: AFTC), a leading manufacturer
of fuel injection systems for government and commercial customers,
issued the following open letter from its Chief Executive Officer,
James McCandless, to its
shareholders regarding current developments at the Company:
Dear Shareholders,
Our company made significant strides in 2009 and management is
expecting a banner year in 2010.
Last October, we successfully demonstrated our new dimethyl
ether (DME) fuel feed pump. Soon after this demonstration, we
received an order from the Korean Institute for Energy Research
(KIER) for several of our DME fuel feed pumps for a new DME vehicle
research project that is slated to begin in June.
Korea is one of several key markets for our DME products.
Several months ago, Korea Gas Corp. (KOGAS), the world's largest
corporate buyer of liquefied natural gas, announced that it will
invest $344 million to build a DME
plant in Saudi Arabia, which would
have an annual capacity of 300,000 tons of DME starting in
2013.
DME is gaining attention elsewhere around the world as well
because it is more inexpensive and cleaner than petroleum-based
diesel fuel. Companies like Volvo Truck, which uses DME to power a
portion of their fleet, and a major European car manufacturer,
which is evaluating DME as a possible passenger car fuel, are
beginning to see the value in this low-cost, environmentally
friendly alternative to petroleum-based diesel fuel. Japan and India are also working diligently to use DME
as a new fuel for heating, cooking, power generation and
transportation.
China is perhaps the largest
potential market for our company. A key component of its 2008
stimulus plan calls for a $440
billion investment in green energy. By 2010, China expects to have 10 percent of all energy
sourced from sustainable resources like biomass, renewable energy
and other combination sources like DME. In fact, China produced more than 2 million tons of DME
last year, and plans to produce 20 million tons of DME per-year by
2020.
AFT has already penetrated the Chinese market recently
announcing new orders for 12 DME feed pumps from Shanghai Diesel
Engine Co., a wholly owned subsidiary of Shanghai Automotive
Industrial Corporation (SAIC). SAIC currently has a joint venture
with General Motors, and operates approximately 50 manufacturing
plants in the Shanghai area that
make passenger cars, tractors, motorcycles, trucks and buses.
I have personally worked with DME for more than 15 years, and
truly believe it is a viable alternative to petroleum-based diesel
fuel. DME, made from biomass, offers a very high reduction of
carbon dioxide emissions – around 95% – compared to conventional
diesel fuel, and it can be produced with very high conversion
efficiency at relatively moderate capital cost and can be made from
a variety of renewable materials. DME infrastructure requirements
are very similar to propane, and retrofitting the current
petroleum-based diesel fuel infrastructure for DME can be
accomplished very easily and at a substantially lower price than
other alternative fuel sources.
In addition to growing our international business, we announced
several new contracts from the U.S. Department of Defense's Small
Business Innovation Research (SBIR) program.
In January, we announced the award of a new contract with the
U.S. Army entitled: "Ultra High Pressure Jet Propellant-8 (JP-8)
Fuel Injection System." AFT is also engaged in several other
advanced fuel system projects for the U.S. Army including a Phase 2
contract valued at more than $700,000
(final award being negotiated) for the redesign of a commercial
diesel common rail pump to lower wear to acceptable levels.
Looking ahead, we are very optimistic about our sales in 2010,
and are expecting deeper penetration into key international markets
including China and Korea. We also
anticipate several new SBIR contract wins, for larger projects
ranging from $500,000 to
$700,000.
I want to also take this opportunity to reassure our
shareholders that we are poised to take advantage of the positive
trends in the alternative energy market and our longstanding
relationship with the SBIR program, which we believe will result in
near-term market share gains.
We believe 2010 will be a very exciting year for Alternative
Fuel Technologies and our shareholders. Thank you for your
continued support.
Sincerely,
James McCandless
Chief Executive Officer
Alternative Fuel Technologies, Inc.
About Alternative Fuel Technologies, Inc.
Alternative Fuel Technologies, Inc. is a research &
development organization engaged in the design, development and
prototype manufacturing of advanced fuel systems for use with a new
alternative fuel --dimethyl ether (DME). The Company has developed
practical, low-cost fuel injection equipment for DME fueled
vehicles and currently provides complete DME fuel systems for
testing and research purposes in addition to retrofit systems that
can be used with most diesel engines. The Company's ultimate goal
is series production of DME fuel systems for the global automotive
market by 2011. For more information, visit
http://www.altfueltechnology.com
About DME:
Dimethyl ether is a new ultra-clean diesel fuel replacement that
can be produced from abundant resources. These include natural gas,
landfill methane, coal and biomass. At current oil prices, DME can
be produced and distributed at less than 1/2 the cost of
conventional fuel. When burned in a diesel engine, all soot
emissions are eliminated and NOx emissions are lowered dramatically
without the use of expensive exhaust aftertreatment devices.
Safe Harbor Statement: Statements contained in this release,
which are not historical facts, including statements about plans
and expectations regarding business areas and opportunities,
acceptance of new or existing businesses, capital resources and
future business or financial results are "forward-looking"
statements. You should not place undue reliance on these
forward-looking statements. Such forward-looking statements are
subject to risks and uncertainties, including, but not limited to,
customer acceptance of our products, our ability to raise capital
to fund our operations, our ability to develop and protect
proprietary technology, government regulation, competition in our
industry, general economic conditions and other risk factors which
could cause actual results to differ materially from those
projected or implied in the forward-looking statements. Although we
believe the expectations reflected in the forward-looking
statements are reasonable, they relate only to events as of the
date on which the statements are made, and our future results,
levels of activity, performance or achievements may not meet these
expectations. We do not intend to update any of the forward-looking
statements after the date of this press release to conform these
statements to actual results or to changes in our expectations,
except as required by law.
CONTACT:
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intellibridgeIR
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949-981-5062
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aftc@intellibridgeir.com
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SOURCE Alternative Fuel Technologies, Inc.