Volvo Group and Westport Fuel Systems Inc. have completed and launched their previously announced joint venture transaction. The joint venture is committed to accelerating the commercialization and global adoption of Westport’s HPDI fuel system technology for long-haul and off-road applications.
On an interim basis, the joint venture will be led by Dan Sceli, chief executive officer of Westport; in addition to Scott Baker, who will serve as vice president, Product Development and technology officer; and Anders Johansson, who will be vice president and commercial officer. The joint venture will be headquartered in Vancouver, Canada.
“The successful closing of the joint venture represents an important milestone for Westport and a true endorsement of our HPDI technology and fuel system,” says Sceli. “Together, we will accelerate the commercial adoption of HPDI for OEMs globally by leveraging the HPDI fuel system to its fullest potential. HPDI is uniquely poised to create and implement affordable solutions in hard-to-abate sectors like heavy-duty transport and off-road applications.”
“This collaboration with Westport is a testament to our shared dedication to sustainability and our belief in the power of partnership to drive industry change,” says Lars Stenqvist, chief technology officer of Volvo Group. “As we embark on our joint venture together, we are confident that we can bring sustainable solutions forward, using the internal combustion engine, running on renewable fuels now and hydrogen in the future.
“We at Volvo are committed to driving the transition to decarbonize transportation, and this new HPDI joint venture enables us to accelerate the adoption of combustion engines powered by hydrogen and renewable fuels for long-haul and off-road applications in partnership with Westport,” adds Stenqvist.
As part of the agreement, three of the joint venture’s board members have been appointed by Westport and the Volvo Group. These initial board members are Sceli; Stenqvist; Andrea Fuder, chief purchasing officer of Volvo Group; Dan Hancock, chair of the Westport board of directors; Karl Viktor Schaller, member of the Westport board of directors; and Jan Ytterberg, senior advisor, Volvo Group.
The joint venture will operate as an independent entity with Westport contributing certain HPDI assets and activities — including related fixed assets, intellectual property and business — into the joint venture. Volvo Group has acquired a 45% interest in the joint venture for approximately $28 million, plus up to an additional $45 million as earn-out depending on the subsequent performance of the joint venture.
