Wesfarmers inks dual-fuel conversion deals with US firms


Contracts with GreenMan subsidiaries bolster Australian company's alternative fuel offerings

September 22, 2011

A Wesfarmers subsidiary is to roll out a dual-fuel heavy vehicle conversion service following the signing of a deals with two subsidiaries of US firm GreenMan Technologies.

Wesfarmers LNG has signed for an undisclosed sum a five-year distribution contract with American Power Group (APG) to market, sell and distribute APG’s V5000HD Aftermarket Dual Fuel System for the heavy-duty on-road, and off-road truck market.

The service is aimed to complement truck gas supply operations that Wesfarmers operates through a subsidiary of its Kleenheat Gas arm, EVOL LNG.

Under the contract, Wesfarmers LNG is also entitled to service the light- and medium-duty market for compressed natural gas (CNG) and biogas applications.

An APG International (APGI) deal will see that firm supply six vehicular conversions and certification training services to facilitate the training of Wesfarmers LNG’s personnel as certified trainers and certified installers of APG products.

"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 APG dual fuel system," GreenMan CEO Lyle Jensen says.

"We expect the training to be completed during October and will move into full-scale commercialisation shortly thereafter."

The deal is the culmination of a 12-month relationship that began with Wesfarmers LNG testing APG’s system by converting two 500-plus horsepower (373 kW) diesel trucks.

The trial was dubbed a success in June.

The dual-fuel system converts diesel engines and diesel generators to function more efficiently and at a lower operating cost, by displacing 40 per cent to 60 per cent of the normal diesel fuel consumption with CNG, LNG, wellhead gas or biomethane, according to APG.

"Our trials have shown it to be a reliable and versatile system, and with the additional work that APGI is undertaking to enhance the technology to ensure it has broader application, it will be just what the Australian market needs," Kleenheat Gas General Manager Graham Smith says.

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