Westport Fuel Systems Inc. (“Westport” or the “Company”) (TSX:WPRT / Nasdaq:WPRT), a global leader in low-emissions alternative fuel transportation technologies, announced today that it has been awarded a program to develop and supply liquefied petroleum gas (LPG) systems for a number of vehicle applications for a global original equipment manufacturer (OEM). The deal is forecasted to provide €38 million in revenue through the end of 2025, with production expected to begin in Q4 2023.
Westport will provide fuel systems solutions for the Euro 6 applications to this OEM, supplying the entire LPG system from the fuel tank to the fuel injectors. In parallel, Westport is also developing fuel systems to respond to future regulations including the proposed Euro 7 standards. Driving alternative fuel technology adoption from light-duty to heavy-duty applications is a keystone of Westport’s OEM technology supply strategy.
“We are proud to supply this industry leading OEM and to serve the growing global market for affordable alternative fuel systems,” said David M. Johnson, Chief Executive Officer of Westport Fuel Systems. “Our proven clean technology solutions support energy security and sustainability, by providing affordable, low carbon fuel options for transportation.”
LPG and bio-LPG, also known as propane or autogas, is a clean-burning alternative fuel used to power light-, medium- and heavy-duty vehicles. LPG fueled vehicles are a cost-competitive low-emissions alternative to vehicles that use gasoline (petrol) or diesel, and the technology satisfies stringent regulatory requirements for emissions reductions. LPG fueled vehicles are permitted to drive in emissions-restricted traffic zones in Europe.
Cost-competitive alternative fuel solutions such as LPG are a compelling option to reduce greenhouse gas emissions in markets like Europe where refueling infrastructure is well established. Alternative fuels for transportation applications are increasingly in demand globally as an affordable, efficient, and clean alternative.
SOURCE: Prins Fuel Systems
