Alternative Fuel Technologies Awarded Phase 2 Army Contract
10 December 2009 - 10:14AM
Marketwired
Alternative Fuel Technology, LLC, a wholly owned subsidiary of
Alternative Fuel Technologies, Inc. (PINKSHEETS: AFTC), announced
today that they have been competitively selected for negotiation
and possible award by the U.S. Army for a Phase 2 SBIR project. The
project is valued at $730,000.
The Phase 2 project is an extension of a successful Phase 1
project where AFT identified a significant wear problem on a
commercial diesel common rail fuel injection system running on JP-8
jet fuel. The Army uses JP-8 jet fuel in all of its diesel
applications for logistics reasons.
In the Phase 2 project, AFT will redesign the commercial diesel
common rail pump to lower wear to acceptable levels. To accomplish
this goal, AFT will apply materials technology and other lessons
learned during the development of their well known DME common rail
fuel system.
About SBIR's:
DoD's SBIR program funds early-stage R&D projects at small
technology companies -- projects which serve a DoD need and have
the potential for commercialization in private sector and/or
military markets. The program, funded at approximately $1.23
billion in FY 2009, is part of a larger ( > $2 billion) federal
SBIR program administered by twelve federal agencies.
As part of its SBIR program, the DoD issues an SBIR solicitation
three times a year, describing its R&D needs and inviting
R&D proposals from small companies -- firms organized for
profit with 500 or fewer employees, including all affiliated firms.
Companies apply first for a six-month to nine-month phase I award
of $70,000 to $100,000 to test the scientific, technical, and
commercial merit and feasibility of a particular concept. If phase
I proves successful, the company may be invited to apply for a
two-year phase II award of $500,000 to $750,000 to further develop
the concept, usually to the prototype stage. Proposals are judged
competitively on the basis of scientific, technical, and commercial
merit. Following completion of phase II, small companies are
expected to obtain funding from the private sector and/or non-SBIR
government sources (in "phase III") to develop the concept into a
product for sale in private sector and/or military markets.
About AFTC:
Alternative Fuel Technology 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). AFTC 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.
About DME
DME 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.
Further information on Alternative Fuel Technologies Inc. is
available at: http://www.altfueltechnology.com/
CONTACT: InvestSource, Inc. Investor Relations: 714-847-2460
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