Volvo Group signs agreement with Westport

A Volvo natural gas powered prime mover in Europe.

The Volvo Group has signed an agreement with Westport Fuel Systems on an injection fuel system technology.

Westport’s High Pressure Direct Injection fuel system technology, designed specifically for alternative fuels, is suited for long haul and off-road applications.

The closing of the joint venture is subject to certain closing conditions, including regulatory and government approvals.

Signed in part to accelerate what is described as the commercialisation and global adoption of High Pressure Direct Injection fuel system technology, it is anticipated that the JV will become operational following the formal closing which is expected in the second quarter of 2024.

High Pressure Direct Injection is a fuel system technology which can be applied in vehicles with internal combustion engines to replace greenhouse gas-emitting fuels, like diesel, with carbon-neutral or zero-carbon fuels like biogas or hydrogen.

“Decarbonisation with internal combustion engines running on renewable fuels, especially with High Pressure Direct Injection, plays an important part in sustainable solutions,” said Lars Stenqvist, Chief Technology Officer Volvo Group.

“HPDI has been on the road in Volvo trucks for over five years and is a proven technology that allows customers to significantly reduce CO2 emissions in LBG (Liquified Biogas) applications here and now and is a potential avenue for hydrogen.”  

Westport will contribute certain HPDI assets and opportunities, including related fixed assets, intellectual property, and business, into the joint venture. 

Volvo Group will acquire a 45 per cent interest in the joint venture for the sum of approximately USD$28 million, payable upon closing, plus up to an additional USD$45 million depending on the performance of the joint venture.

Headquartered in Vancouver, Canada, Westport serves customers in more than 70 countries as a supplier of advanced fuel delivery components and systems for clean, low-carbon fuels such as natural gas, renewable natural gas, propane, and hydrogen.

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