Benzinga | Nov 16, 2020 08:44AM EST

Westport Fuel Reports Follow-On Contract For New Product Development Work With Its Current European-Based Original Equipment Manufacturer Partner To Apply Co.'s HPDI 2.0 To Updated Base Engine Platform, No Terms Disclosed

Westport Fuel Systems Inc. ("Westport Fuel Systems" or the "Company") (TSX:WPRT, NASDAQ:WPRT) today announced a follow-on contract for new product development work with its current European-based original equipment manufacturer ("OEM") partner to apply Westport HPDI 2.0(tm) to an updated base engine platform. The program will incorporate new features for the resulting HPDI 2.0 fuel system as well as certification to meet Euro VI Step E emission regulations that take effect in 2024.

For competitive reasons, product details and the value of the development program have been withheld.

"We see strong growth in the European heavy-duty LNG truck market driven by a number of factors, including increased product availability, an expanding LNG fueling network, purchase incentives and compelling ongoing operating cost savings," said David M. Johnson, Chief Executive Officer of Westport Fuel Systems. "HPDI 2.0 enables long-haul trucks to fully meet a fleet's performance demands for payload, performance, and durability compared to state-of-the-art diesel vehicles and outperforms spark-ignited LNG trucks in real world operations. This new development program confirms that HPDI offers a viable compliance pathway for OEMs to achieve the 2025 heavy-duty CO2 emission reduction requirements and reflects our customer's satisfaction with the progress we have made growing market share with cleaner, gaseous-fueled transportation solutions."

Demanding long-haul operations driving more than 100,000 annual kilometres represent almost 90% of CO2 emissions from the on-road freight sector. With the increasing availability and use of biomethane, the path to achieving net-zero carbon for long-haul trucking is available now.