The Volvo Group and Westport Fuel Systems have signed an agreement to establish a joint venture to speed up commercialization and global adoption of Westport’s High Pressure Direct Injection (HPDI) fuel system technology for long-haul and off-road applications.
High Pressure Direct Injection (HPDI) is a fuel system technology which can be applied in ICE vehicles to replace greenhouse gas-emitting fuels, like diesel, with carbon-neutral or zero-carbon fuels like biogas or hydrogen, according to Volvo.
“Decarbonization with internal combustion engines running on renewable fuels, especially with High Pressure Direct Injection (HPDI), plays an important part in sustainable solutions,” says Lars Stenqvist, chief technology officer for 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 LBG (Liquified Biogas) applications here and now and is a potential avenue for hydrogen.”
The closing of the joint venture is subject to certain closing conditions, including regulatory and government approvals. The companies anticipate that the joint venture will become operational following the formal closing, which is expected in the second quarter of this year.
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% interest in the joint venture for the sum of approximately $28 million, payable upon closing, plus up to an additional $45 million depending on the performance of the joint venture.
