The Volvo Group and Westport Fuel Systems will partner on the use of high-pressure direct injection to reduce carbon emissions in internal combustion engines. The joint venture, pending regulatory and government approvals, aims to integrate Westport’s HPDI fuel system technology in long-haul and off-road applications.
Westport will contribute certain HPDI assets, including related fixed assets, intellectual property, and business. Volvo will acquire 45% interest in the JV for $28 million, plus up to an additional $45 million as an “earn out depending on the subsequent performance of the JV,” according to the companies.
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High Pressure Direct Injection (HPDI) is a fuel system technology that can be applied in vehicles with internal combustion engines to replace greenhouse gas-emitting fuels, such as diesel, with carbon-neutral or zero-carbon fuels such as biogas or hydrogen.
“Decarbonization with internal combustion engines running on renewable fuels, especially with High Pressure Direct Injection (HPDI), plays an important part in sustainable solutions,” said Lars Stenqvist, CTO, Volvo Group, in a statement. “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 in LBG (Liquified Biogas) applications here and now and is a potential avenue for hydrogen.”
