REDFORD, Mich., Oct. 27 /PRNewswire/ -- Alternative Fuel Technology, LLC, a wholly owned subsidiary of Alternative Fuel Technologies, Inc. (Pink Sheets: AFTC) announced today that the Company has been awarded and has commenced working on a U.S. Army Phase 2 SBIR project valued at US$715,000.
"This is the largest Army contract the Company has ever been awarded," said James McCandless, Chief Executive Officer of Alternative Fuel Technologies, Inc. "The Phase 2 project is an extension of a successful Phase 1 project in which 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. The Company will redesign the commercial diesel common rail pump to lower wear to acceptable levels in this Phase 2 project. To accomplish this goal, AFT will apply materials technology and other lessons learned during the development of the Company's well known DME common rail fuel system.
"Following successful completion of Phase 2, the project may qualify for Phase 3 whereby the Company can commercialize the product and sell it to the military and commercial customers," said McCandless.
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.
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 1 award of $70,000 to $100,000 to test the scientific, technical, and commercial merit and feasibility of a particular concept. If phase 1 proves successful, the company may be invited to apply for a two-year, phase 2 of approximately $725,000 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 2, small companies are expected to obtain funding from the private sector and/or non-SBIR government sources (in "Phase 3") to develop the concept into a product for sale in private sector and/or military markets.
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.
SOURCE Alternative Fuel Technologies, Inc.