Alternative Fuel Technologies, Inc. Awarded new Phase 1 U.S. Army Contract

REDFORD, Mich., June 14 /PRNewswire-FirstCall/ -- Alternative Fuel Technology, LLC, a wholly owned subsidiary of Alternative Fuel Technologies, Inc. (Pink Sheets: AFTC) announced today that the Company has been awarded a Phase 1 SBIR contract (W56HZV-10-C-0200) from the U.S. Army to concept design and demonstrate an ultra high pressure, intensified fuel injection system for use with jet propellant (JP-8) fuel. The goal of this Phase 1 project is to demonstrate an injection system that can produce 40,000 psi (2750 bar).

"It is generally agreed that very high injection pressures are needed to improve engine thermal efficiency fuel economy, lower heat rejection, and to minimize exhaust aftertreatment complexity and costs," said James McCandless, Chief Executive Officer of Alternative Fuel Technologies, Inc. "With most fuel injection systems, JP-8 fuel causes wear and premature failure. Using oil powered, intensified injectors generally eliminates this problem because many of the highly loaded parts are lubricated with oil instead of JP-8 fuel.  Also, the injector plungers are not side loaded and can therefore withstand very high pressures."

In addition to being CEO of Alternative Fuel Technologies, Inc., Mr. McCandless is one of the original developers of oil powered, intensified fuel injectors. Millions of this type of injector have been used since the mid 1990s by Navistar, Ford, Caterpillar, and Isuzu.

The Army's stated goal of 40 ksi is a reasonable projection of what will be needed in the relatively near future. The Army already uses lube oil actuated, intensified fuel injectors on some of its combat vehicle engines, but pressures are limited to <30,000 psi.

A Phase 1 option to this contract may be awarded, which could raise the current contract award to $120,000. Assuming that Phase 1 is successful, the Company may be asked to propose a Phase 2 project to further develop the design. A Phase 2 project is typically funded at about $750,000.

To date, the Company has applied for a total of 3 SBIR projects from the U.S. Army and has been awarded contracts for all three.

"We believe that developing specialty fuel injection equipment for the military can improve the reliability and performance of military vehicles, and helping our military complete missions more quickly and safely," 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.

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SOURCE Alternative Fuel Technologies, Inc.