Completion of the joint venture is subject to certain closing conditions, including regulatory and governmental approvals. The joint venture is expected to commence operations upon formal closing, which is expected to occur in the second quarter of 2024.
High Pressure Direct Injection (HPDI) is a fuel system technology that can be used in internal combustion engine vehicles to replace greenhouse gas emitting fuels such as diesel with carbon neutral or zero carbon fuels such as biogas or hydrogen.
“Decarbonisation with internal combustion engines running on renewable fuels, especially with High Pressure Direct Injection (HPDI), plays an important role in sustainable solutions. HPDI has been on the road in Volvo trucks for more than 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 path for hydrogen,” says Lars Stenqvist, Chief Technology Officer Volvo Group.
As previously announced, Westport will contribute certain HPDI assets and opportunities, including related fixed assets, intellectual property and business, to the joint venture. Volvo Group will acquire a 45% interest in the joint venture for approximately US$28 million, payable at closing, plus up to an additional US$45 million based on the joint venture’s performance.
As previously reported by Trans.iNFO, Westport Fuel Systems Inc. received a significant endorsement from IKEA in December 2023, highlighting the effectiveness of its High Pressure Direct Injection (HPDI™) fuel system in reducing emissions from heavy-duty vehicles.
The demonstration featured a prototype truck equipped with Westport’s H2 HPDI™ fuel system, hauling an IKEA home-furnishing trailer. This marks the second validation of the H2 HPDI system within a major fleet in the last 60 days, indicating a significant step towards decarbonizing the heavy-duty transport industry.
