Volvo Group Pioneers Sustainable Transport with Westport Joint Venture

GOTHENBURG, Sweden, March 11, 2024 /PRNewswire/ -- In a historic move for sustainable transport, The Volvo Group has entered into a definitive agreement with Westport Fuel Systems Inc. This joint venture is a major stride forward, following the previously announced Letter of Intent, focusing on ramping up the commercialization and adoption of Westport's advanced High Pressure Direct Injection (HPDI™) fuel system technology. These innovations are targeted at long-haul and off-road applications, signaling a new era in clean energy use for heavy vehicles.

The announcement promises to mark a significant milestone when the joint venture becomes operational, anticipating the formal closing in the second quarter of 2024. This fruition is contingent upon the satisfaction of certain conditions, including but not limited to obtaining the necessary regulatory and governmental consents.

High Pressure Direct Injection (HPDI) represents a groundbreaking fuel system technology that has the potential to revolutionize the vehicle industry. The traditional fuels, known for their high greenhouse gas emissions, such as diesel, could potentially be replaced with either carbon-neutral or zero-carbon alternatives like biogas or hydrogen. Such a change would indicate a transformative leap towards cleaner internal combustion engines.

The Volvo Group, speaking through its Chief Technology Officer, Lars Stenqvist, expressed a strong belief in the significant role of decarbonization. The adoption of internal combustion engines fueled by renewable resources, particularly leveraging the HPDI innovation, is key to delivering sustainable solutions. With over five years of road-tested reliability in Volvo trucks, HPDI has proven its efficacy – offering customers a significant reduction in CO2 emissions through LBG (Liquified Biogas) applications and holding promise for hydrogen-based avenues as well.

Signaling their commitment to the joint venture, Westport will be contributing a remarkable suite of HPDI assets including tangible fixed assets, invaluable intellectual property rights, and their ongoing business. On the other side, the Volvo Group plans to purchase a 45% share in this venture, an investment worth approximately US$28 million, payable at closing. In addition to the initial investment, there could be supplementary payments that might climb up to US$45 million, depending on the success and performance trajectory of the joint venture.

For Further Information and Media Inquiries

Journalists who are keen on obtaining more information regarding this notable industry collaboration are encouraged to reach out to:

Claes Eliasson, the seasoned Head of Media Relations at the Volvo Group. He is available to provide detailed explanations and insights into this venture. The contact for his office is +46 76 553 7229 or via email at [email protected]

For those seeking comprehensive insights on the Volvo Group’s extensive operations and future initiatives, please explore volvogroup.com.

Stay updated on the goings-on at Volvo Group by following their Twitter handle @volvogroup.

Volvo Group At The Forefront of Innovation

The Volvo Group has been an iconic name, synonymous with driving prosperity through cutting-edge transport and infrastructure solutions. The company's diverse array of offerings includes trucks, buses, construction equipment, power solutions for both marine and industrial applications, as well as financing and services engineered to optimize customer uptime and productivity. Established in the year 1927, the Volvo Group has held a steadfast commitment to reshaping the sustainable transport and infrastructure landscape for the future.

With its headquarters in the bustling city of Gothenburg, Sweden, the Volvo Group prides itself on its expansive global presence, employing over 100,000 dedicated individuals and providing its services to customers in almost 190 markets worldwide. 2023 witnessed the Volvo Group achieving a net sales milestone, reaching approximately SEK 553 billion (EUR 48 billion). The group's shares have the distinction of being listed on the reputable Nasdaq Stockholm.

For comprehensive details and developments, potential readers and stakeholders are encouraged to visit http://news.cision.com.

An additional source for in-depth information about this strategic partnership between Volvo Group and Westport is available at https://news.cision.com/ab-volvo/r/volvo-group-signs-agreement-with-westport-for-joint-venture-to-reduce-co2-emissions-from-long-haul-t,c3943603.

Downloads and Resources

The following documents are made available for those interested to dive deeper into the details of the joint venture agreement:

Closing Thoughts

With AB Volvo's strategic investment into this eco-friendly technology through the joint venture with Westport, it reinforces its dedication to fostering sustainable transport innovations. The global push for clean energy solutions and reduced carbon emissions positions the Volvo Group as a leader in ecological conservation and forward-thinking industry practices. This alliance not only enables them to edge closer to their sustainability goals but also positions them to meet the growing global demand for environmentally conscious transport and infrastructure solutions.

The Volvo Group's vision to make a tangible impact on the environment, combined with its diverse and efficient product offerings, underpins a legacy that continues to evolve while maintaining its core commitment to sustainability. This joint venture will undoubtedly act as a catalyst, setting new benchmarks in the industry for others to follow, and solidifying the Volvo Group’s reputation as a frontrunner in the shift towards a more sustainable future.

SOURCE: AB Volvo

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