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Volvo and Westport to form JV to advance HPDI fuel system

19 July 2023

Volvo Group and Westport Fuel Systems have signed a non-binding letter of intent to establish a joint venture to accelerate the commercialization and global adoption of Westport’s HPDI™ fuel system technology for long-haul and off-road applications.

Westport will contribute current HPDI assets and activities including related fixed assets, intellectual property, and business into the joint venture. Volvo will acquire a 45% interest in the joint venture for the sum of approximately US$28 million (SEK 300 million) plus up to an additional US$45 million (SEK 500 million) depending on the performance of the joint venture.

Volvo has been using the Westport HPDI fuel system in their Euro VI compliant FH LNG and FM LNG trucks with 13 L engines, which went on sale in 2018. The engine was rated at 338 kW (460 hp) at 1700-1900 rpm and 2300 Nm at 1050-1300 rpm. A 420 hp/2100 Nm version was also available. The aftertreatment system for the Euro VI HPDI engine included a DOC, DPF, urea-SCR and ASC.

“Decarbonization with internal combustion engines running on renewable fuels, especially with HPDI, plays an important part in sustainable solutions. 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 (Liquefied Biogas) applications here and now and is a potential avenue for hydrogen,” said Lars Stenqvist, Chief Technology Officer of Volvo.

Completion of the joint venture is conditional on the successful negotiations and execution of a definitive investment agreement, joint venture agreement, supply agreement and development agreement. The joint venture is expected to launch in the first half of 2024.

Source: Westport