- The two companies are positioned to be the first to offer Westport™ HPDI technology in the high horsepower off-road market; initial focus on mining trucks and locomotives; Video Link for Caterpillar, EMD and Westport Executive Statements Included in Press Release -
VANCOUVER, June 5, 2012 /PRNewswire/ - Westport Innovations Inc. (TSX:WPT/NASDAQ:WPRT), a global leader in natural gas engines, has signed agreements with Caterpillar Inc. (NYSE: CAT) to co-develop natural gas technology for off-road equipment, including mining trucks and locomotives. Caterpillar and Westport will combine technologies and expertise, including Westport™ High Pressure Direct Injection (HPDI) technology and Caterpillar's industry leading off-road engine and machine product technology, to develop the natural gas fuel system. Caterpillar will fund the development program. When the products go to market, Westport expects to participate in the supply of key components.
"This is a significant opportunity that has the potential to transform important segments of the global off-road equipment industries," said David Demers, CEO of Westport Innovations. "We are working with the global leader in engines, locomotives and off-road equipment to develop an attractive natural gas offering for their customers. The substantial price difference between natural gas and diesel fuel is resulting in a strong financial incentive to enable off-road applications to take advantage of low natural gas energy costs without sacrificing operational performance. There is also a clear environmental incentive because of the reduced carbon emissions. Adding to the solid business case for this program is the potential to convert existing field units to natural gas - opening up a whole new market opportunity."
While the agreements initially focus on engines used in mining trucks and locomotives, the companies will also develop natural gas technology for Caterpillar's off-road engines, which are used in a variety of electric power, industrial, machine, marine and petroleum applications worldwide.