Westport, Volvo sign engine development deal

VANCOUVER: Westport Innovations Inc. , a Vancouver-based manufacturer of alternative fuel, low-emissions transportation technologies, has signed an agreement to develop biogas- and natural gas-fuelled engine products with Volvo Powertrain, a subsidiary of Volvo AB,

The two companies agreed to share the development risks for these “gaseous fuel engines” and will mutually agree on the priority for commercial launch, but details of the products or markets were not immediatly available for what Westport described as “competitive reasons.”

Volvo will reimburse Westport for engineering and related development costs at passage through each successful major development stage.

Westport will supply gas-related components and expects to generate revenue on each new natural gas and biogas engine sold.

“Our development and commercialization program with Volvo continues to develop, both in scale and scope” said David Demers, CEO of Westport Innovations.

“Natural gas and biogas are quickly becoming the alternative fuel of choice for commercial vehicles and we expect this will lead to a new generation of clean, low-emission engines from Volvo.”

Westport will work directly with the Volvo AB brands to identify market development opportunities and assist in the infrastructure to deliver biogas and natural gas where needed.

Westport originally entered into a Tier 1 Development Supplier agreement with Volvo in November, 2009 for heavy-duty natural gas engines and the associated supply chain.

Westport Innovations Inc., headquartered in Vancouver, designs and builds technology that allows engines to operate on clean-burning fuels such as compressed natural gas (CNG), liquefied natural gas (LNG), hydrogen and biofuels such as landfill gas.