Westport and Caterpillar Announce Agreement to Develop Natural Gas Technology for Off-Road Equipment
- The two companies are positioned to be the first to offer Westport(TM) HPDI
technology in the high horsepower off-road market; initial focus on
mining trucks and locomotives; Video Link for Caterpillar, EMD and
Westport Executive Statements Included in Press Release -
VANCOUVER, June 5, 2012 /PRNewswire/ – Westport Innovations Inc.
(TSX:WPT/NASDAQ:WPRT), a global leader in natural gas engines, has
signed agreements with Caterpillar Inc. (NYSE: CAT) to co-develop
natural gas technology for off-road equipment, including mining trucks
and locomotives. Caterpillar and Westport will combine technologies and
expertise, including Westport(TM) High Pressure Direct Injection (HPDI)
technology and Caterpillar’s industry leading off-road engine and
machine product technology, to develop the natural gas fuel system.
Caterpillar will fund the development program. When the products go to
market, Westport expects to participate in the supply of key
components.
“This is a significant opportunity that has the potential to transform
important segments of the global off-road equipment industries,” said
David Demers, CEO of Westport Innovations. “We are working with the
global leader in engines, locomotives and off-road equipment to develop
an attractive natural gas offering for their customers. The
substantial price difference between natural gas and diesel fuel is
resulting in a strong financial incentive to enable off-road
applications to take advantage of low natural gas energy costs without
sacrificing operational performance. There is also a clear
environmental incentive because of the reduced carbon emissions.
Adding to the solid business case for this program is the potential to
convert existing field units to natural gas – opening up a whole new
market opportunity.”
While the agreements initially focus on engines used in mining trucks
and locomotives, the companies will also develop natural gas technology
for Caterpillar’s off-road engines, which are used in a variety of
electric power, industrial, machine, marine and petroleum applications
worldwide.
“This agreement does more than pair two leaders in their respective
industries,” said Steve Fisher, vice president of Caterpillar’s Large
Power Systems Division. “Many of our customers are asking for
natural-gas powered equipment in order to reap the financial and
environmental benefits. The program positions Caterpillar to become the
first manufacturer to bring Westport HPDI technology to the high
horsepower off-road market, offer the broadest product line of natural
gas-fueled machines and equipment, and capitalize on the attractiveness
of natural gas as an alternate mobile fuel – all within the shortest
time frame for our customers.”
“This is a true win-win for our customers and the environment,” said
Billy Ainsworth, President and CEO of Electro-Motive Diesel, a
subsidiary of Progress Rail Services, which will develop the natural
gas-powered locomotives. “As a part of Caterpillar, we have the ability
to be on the forefront of developing cutting-edge solutions for our
industry, and we look forward to continuing those advancements for
years to come.”
Development programs will start immediately for both new and existing
engines, combustion technology and fuel systems. Commercial production
is expected to begin in about five years.
Video Link for Executive Statements:
http://www.westport.com/news/2012/westport-and-caterpillar-natural-gas-technology-agreement
David Demers, CEO, Westport Innovations
Steve Fisher, Vice President of Caterpillar’s Large Power Systems
Division
Billy Ainsworth, President and CEO of Electro-Motive Diesel, a
subsidiary of Progress Rail Services
About Caterpillar:
For more than 85 years, Caterpillar Inc. has been making sustainable
progress possible and driving positive change on every continent. With
2011 sales and revenues of $60.138 billion, Caterpillar is the world’s
leading manufacturer of construction and mining equipment, diesel and
natural gas engines, industrial gas turbines and diesel-electric
locomotives. The company also is a leading services provider through
Caterpillar Financial Services, Caterpillar Remanufacturing Services,
Caterpillar Logistics Services and Progress Rail Services. More
information is available at: http://www.caterpillar.com.
About EMD:
Founded in 1922, Electro-Motive Diesel, a subsidiary of Progress Rail
Services, a Caterpillar Company, is an original equipment manufacturer
of diesel-electric locomotives. Headquartered in LaGrange, Illinois,
with additional manufacturing facilities and business offices around
the world, EMD designs, manufactures and sells diesel-electric
locomotives for all commercial railroad applications and has sold its
products in more than 70 countries worldwide. The Company is the only
diesel-electric locomotive manufacturer to have produced more than
72,500 engines and has the largest installed base in both North America
and worldwide. In addition to its manufacturing activities, EMD has an
extensive aftermarket business offering customers replacement parts,
maintenance solutions, and a range of value-added services. The Company
is also a global provider of diesel engines for marine propulsion,
offshore and land-based oil well drilling rigs, and stationary power
generation. Additional information may be found at www.EMDiesels.com.
About Westport Innovations Inc.
Westport Innovations Inc. is a leading global supplier of proprietary
solutions that allow engines to operate on clean-burning fuels such as
compressed natural gas (CNG), liquefied natural gas (LNG), hydrogen,
and renewable natural gas (RNG) fuels such as landfill gas and helps
reduce greenhouse gas emissions (GHG). Westport technology offers
advanced LNG fueling systems with direct injection natural gas engine
technology for heavy-duty vehicles such as highway trucks and off-road
applications such as mining and rail. Westport’s joint venture with
Cummins Inc., Cummins Westport Inc. designs, engineers and markets
spark-ignited natural gas engines for North American transportation
applications such as trucks and buses. Westport LD division is one of
the global leaders for natural gas and liquefied petroleum gas (LPG)
fuel in passenger cars, light-duty trucks and industrial applications
such as forklifts. To learn more about our business, visit our website
or subscribe to our RSS feed at www.westport.com, or follow us on Twitter @WestportDotCom.
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SOURCE Westport Innovations Inc.
