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Volvo Group signs agreement with Westport

Published by , Assistant Editor
Global Hydrogen Review,


The Volvo Group has signed an agreement according to the previously announced Letter of Intent (LOI) with Westport Fuel Systems Inc to establish a joint venture (JV) to accelerate the commercialisation and global adoption of Westport's High Pressure Direct Injection (HPDI™) fuel system technology for long-haul and off-road applications.

The closing of the JV is subject to certain closing conditions, including regulatory and government approvals. It is anticipated that the JV will become operational following the formal closing which is expected in the 2Q24.

High Pressure Direct Injection (HPDI) 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 (HPDI), plays an important part in sustainable solutions. 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 liquified biogas (LBG) applications here and now and is a potential avenue for hydrogen," said Lars Stenqvist, Chief Technology Officer Volvo Group.

As previously announced, Westport will contribute certain HPDI assets and opportunities, including related fixed assets, intellectual property, and business, into the JV. Volvo Group will acquire a 45% interest in the JV for the sum of approximately US$28 million, payable upon closing, plus up to an additional US$45 million depending on the performance of the JV.

Read the article online at: https://www.globalhydrogenreview.com/hydrogen/12032024/volvo-group-signs-agreement-with-westport/

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