Westport Fuel Systems has signed an investment agreement with Volvo Group. This Joint Venture (JV), previously announced by Westport, is expected to propel the global hybridization of traditional fossil fuel engines.
The strategic JV aims to hasten the commercialization and global adoption of Westport’s High Pressure Direct Injection (HPDI) fuel system technology, specifically designed for long-haul and off-road applications. This advanced technology is touted as a significant lever in the move towards reducing carbon emissions in the transport sector.
Given the current climate scenario, this Joint Venture comes at a critical juncture when immediate action in decarbonizing often overlooked sectors such as long-haul and off-road transport are of paramount importance.
Volvo Group will attain a 45% interest in the JV for approximately US$ 28 million, payable upon closing, with a potential additional investment of up to US$ 45 million, contingent upon the subsequent performance of the JV.
While the finalization of the JV agreement is pending certain closing conditions, including regulatory and government approvals, it is anticipated to be operational by the second quarter of 2024.
