Volvo and Westport Fuel Systems Inc. say they are establishing a joint venture to accelerate the commercialization and adoption of Westport’s HPDI fuel system technology for long-haul and off-road applications.
HPDI enables truck manufacturers to develop powertrains based on alternative fuels such as natural gas, biogas and hydrogen. Volvo says it will be a key customer of the joint venture, but the joint venture’s mandate will be to enhance commercialization of HPDI through the addition of new trucking and equipment manufacturers as customers.
Westport will contribute current HPDI assets and activities including related fixed assets, intellectual property, and business into the joint venture. Volvo will acquire a 45% interest in the joint venture.
Volvo’s ambition is to reach net-zero greenhouse gas emission-enabled products, solutions and services by 2040.
“Decarbonization with internal combustion engines running on renewable fuels, especially with HPDI, plays an important part in sustainable solutions,” says Lars Stenqvist, CTO of Volvo. “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.”
The joint venture is expected to launch in the first half of 2024.
