Volvo, Westport Fuel Systems Partner to Cut Long-Haul Emissions

By Dominic Chopping

STOCKHOLM--Volvo will establish a joint venture with Westport Fuel Systems to accelerate the commercialization and global adoption of Westport's fuel system technology to help reduce carbon dioxide emissions from long haul transport.

The Swedish truck maker said Westport's high-pressure direct-injection fuel system technology can be applied in vehicles with internal combustion engines to replace greenhouse gas-emitting fuels, like diesel, with carbon-neutral or zero-carbon fuels like biogas or hydrogen.

The agreement signed today is according to an announced letter of intent with Westport contributing high-pressure direct-injection assets and opportunities, including related fixed assets, intellectual property, and business to the joint venture.

Volvo Group will acquire a 45% interest in the joint venture for around $28 million payable upon closing, plus up to an additional $45 million depending on the performance of the venture.

The joint venture is expected to become operational following the formal closing, expected in the second quarter of 2024.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

03-11-24 0811ET