The Volvo Group and Westport Fuel Systems have agreed to a joint venture to accelerate the commercialization and global adoption of Westport's High-Pressure Direct Injection (HPDI) fuel system technology for long-haul and off-road applications.
The HPDI fuel system technology can be applied in vehicles with internal combustion engines to replace greenhouse gas-emitting fuels, like diesel, with carbon-neutral or zero-carbon fuels such as biogas or hydrogen.
The joint venture will be operational following the formal closing expected in Q2 2024, subject to certain closing conditions, including regulatory and government approvals.
"Decarbonization with internal combustion engines running on renewable fuels, especially with High-Pressure Direct Injection, plays an important part in sustainable solutions,” said Stenqvist, Chief Technology Officer of The 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 Liquified Biogas applications here and now and is a potential avenue for hydrogen.”
The Volvo Group will acquire a 45% interest in the joint venture for approximately $28 million, to be paid on closing, and an additional $45 million, depending on the joint venture's performance.
Westport will contribute certain HPDI assets and opportunities to the joint venture, including related fixed assets, intellectual property, and business.
