Volvo Powertrain, a subsidiary of Volvo AB, and Westport have signed an agreement defining Westport’s responsibility to develop biogas- and natural gas-fuelled engine products for Volvo. (Earlier post.) Details of the products or markets will be disclosed later. The main features of the long term relationship are as follows:
- Westport and Volvo will mutually agree on the priority for commercial launch of gaseous fuel engines and will share the risks of development.
- For products requested by Volvo, Westport will be reimbursed for engineering and related development costs at passage through each successful major development gate.
- Westport will arrange for or supply gas-related components.
- Westport expects to generate revenue on each new natural gas/biogas engine sold.
The current natural gas engine development program will result in an engine that will meet future emission requirements and be commercialized according to a mutually agreed timeline. Westport will also be working directly with the Volvo AB brands to help identify market development opportunities and assist in the infrastructure build-out of biogas and natural gas where needed.
Westport originally entered into an agreement with Volvo in November, 2009, describing Westport as a Tier 1 Development Supplier for its heavy-duty natural gas engines and associated supply chain. This new agreement has evolved from the previous agreement noted.