Volvo Group, Westport Fuel Systems Advance JV Plans

High-Pressure Gas-Injection Fuel System Venture to Be Operational in Q2
Volvo truck with Westport technology
Operations under the joint venture are scheduled to start in the second quarter, after regulatory approval. (Volvo Group)

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Volvo Group and Westport Fuel Systems Inc. have put the finishing touches on their previously announced joint venture and are moving forward with deployment of a high-pressure gas-injection fuel system for commercial applications, Volvo said March 11.

Westport and the Swedish truck manufacturer signed a nonbinding letter of intent in July to commercialize and deploy the Vancouver, British Columbia-based developer’s High Pressure Direct Injection (HPDI) technology system for longhaul and off-road applications. Operations under the JV are scheduled to start in the second quarter, after regulatory approval.

The HPDI fuel system technology can be used in internal combustion engines such as diesels, along with carbon-neutral or carbon-free fuels such as biogas or hydrogen.

Westport will contribute certain HPDI assets and opportunities to the JV.

Volvo Group, the parent company of Volvo Trucks North America and Mack Trucks, is taking a 45% stake in the venture for around $28 million, plus up to an extra $45 million depending on the success of the partnership.

“Decarbonization of internal combustion engines powered by renewable fuels, in particular High Pressure Direct Injection (HPDI), plays an important role in sustainable solutions,” Volvo Group Chief Technology Officer Lars Stenqvist said in a statement.

Lars Stenqvist


“HPDI has been on the road in Volvo trucks for over five years and is a proven technology that enables customers today to significantly reduce CO2 emissions in LBG (liquefied biogas) applications and is also a potential way forward for hydrogen,” he added.

Volvo Group has a three-pronged approach to decarbonization of its product line — battery-electric, fuel cell electric and internal combustion engines using renewable biofuels.

Westport works with several original equipment manufacturers across its businesses, and both partners expect the JV to mirror this model, interim CEO Tony Guglielmin said during the company’s third-quarter 2023 analyst earnings call.

The Canadian company is set to issue fourth-quarter 2023 earnings March 18. Guglielmin was replaced on a permanent basis by Dan Sceli in January. Previously, Sceli was an executive with Cadillac Products Automotive Co. and spring manufacturer Peterson American Corp.

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