Vancouver-based Westport Fuel Systems has signed development and supply agreements with Weichi Group to develop, market and commercialize a heavy-duty natural gas engine. Company image.
Westport Fuel Systems engine will meet China VI emissions standards
Westport Fuel Systems announced on Wednesday that it has entered into development and supply agreements with Weichai Westport Inc. (WWI) to develop, market, and commercialize a heavy-duty, natural gas engine featuring the Westport HPDI 2.0™ technology.
The engine will be based on one of Weichai Power Co., Ltd.’s heavy-duty engine platforms. Weichai Power and WWI are affiliates of the Weichai Holding Group Co., Ltd.
“We have achieved another milestone by fully and formally supporting our partner, Weichai, a dominant engine producer in China, in the development of clean heavy-duty vehicles to help reduce greenhouse gas emissions in China,” said Nancy Gougarty, Chief Executive Officer of Westport Fuel Systems.
According to the Vancouver-based company, under the new development program for the Chinese market, Westport Fuel Systems will support the adaptation of the Westport HPDI 2.0 technology onto one of Weichai Power’s heavy-duty engine platforms.
The new natural gas engine will be certified to meet China VI emissions standards and is expected to be launched in the second half of 2019.
Once in production, Westport Fuel Systems will supply critical HPDI 2.0 system components to WWI, each of which is required for every HPDI 2.0 engine sold by WWI.
WWI has committed to purchase HPDI 2.0 system components required for a minimum of 18,000 HPDI 2.0 engines between the launch date and the end of 2023.
In addition, Westport Fuel Systems will receive a royalty payment from WWI for each engine sold in consideration of the HPDI license rights provided to WWI. WWI will market and sell the heavy-duty natural gas engines with the Westport HPDI 2.0 technology to various truck original equipment manufacturers.
“These agreements demonstrate the viability of our market-ready, clean technology solutions; secure the value of our Westport HPDI technology; and provide protection to our intellectual property,” said Gougarty. She added “With WWI’s committed volume, this will extend our first mover advantage and allow us to access further economies of scale with our suppliers.”
Dr. Tan Zuguang, Chairman of Weichai said growing demand for natural gas vehicles also means more demand for better performing, cleaner and more efficient engines.
“Westport HPDI 2.0 technology provides the only proven and commercially available solution that can deliver on all of these demands and provide up to 20 per cent GHG reduction, while using a more economical fuel,” said Zuguang.
“This, combined with the extensive liquefied natural gas fuelling infrastructure network in China, will provide the domestic Chinese market with a viable clean technology solution that we believe will become the leading powertrain solution in the world for heavy-duty long-haul trucks.”