Volvo Group forges an agreement with Westport Fuel Systems Inc, catalyzing the commercialization and global adoption of Westport’s High-Pressure Direct Injection (HPDI) fuel system technology. This collaboration of Volvo and Westport underscores a steadfast commitment to combating climate change by significantly curtailing CO2 emissions within the transportation sector.
Originating from a previously disclosed Letter of Intent, this joint venture epitomizes a significant stride toward sustainable transportation solutions. Leveraging HPDI technology, this alliance endeavors to transition vehicles equipped with internal combustion engines from fossil fuels to sustainable alternatives such as biogas or hydrogen, delineating a path toward carbon neutrality and a zero-carbon future in heavy transport.
Anticipated to commence operations in the second quarter of 2024, subject to satisfying specific conditions including regulatory and government consents, this venture signifies an advancement in eco-friendly transport technologies. Volvo Group’s Chief Technology Officer, Lars Stenqvist, accentuated the pivotal role of decarbonization in the sector’s future. “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,” he articulated.
Per the agreement’s terms, Westport will endow the joint venture with essential HPDI assets, encompassing intellectual property, related fixed assets, and business prospects. Conversely, Volvo Group will secure a 45% interest in the venture, with an initial investment of approximately $28 million, and the possibility of an additional $45 million contingent on the joint venture’s performance.
This ambitious alliance not only highlights the Volvo Group and Westport Fuel Systems’ dedication to environmental stewardship but also represents a pivotal leap toward the decarbonization of long-haul and off-road transportation. As the global community confronts the pressing demand for sustainable solutions, this collaboration presents a beacon of hope for realizing a greener, more sustainable future for the worldwide transportation industry.
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