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:

  1. Westport and Volvo will mutually agree on the priority for commercial launch of gaseous fuel engines and will share the risks of development.
  2. For products requested by Volvo, Westport will be reimbursed for engineering and related development costs at passage through each successful major development gate.
  3. Westport will arrange for or supply gas-related components.
  4. 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.