Volvo and Westport Fuel Systems announced on Tuesday the closing of the transaction and launch of their joint venture.
Dan Sceli, CEO of Westport, Scott Baker and Anders Johansson will lead the joint venture on an interim basis. Baker will take the role of vice president, product development and technology officer. Johansson will be vice president and commercial officer. The venture will be headquartered in Vancouver.
"The successful closing of the joint venture represents an important milestone for Westport and a true endorsement of our HPDI (high-pressure direct injection) technology and fuel system," Sceli says. "Together, we will accelerate the commercial adoption of HPDI for OEMs globally by leveraging the HPDI fuel system to its fullest potential. HPDI is uniquely poised to create and implement affordable solutions in hard-to-abate sectors like heavy-duty transport and off-road applications."
HPDI allows customers to continue using internal combustion engines while achieving near-zero greenhouse gas emissions, the companies say. The system replaces greenhouse gas-emitting fuels, such as diesel, with carbon-neutral or zero-carbon fuels such as biogas or hydrogen.
"This collaboration with Westport is a testament to our shared dedication to sustainability and our belief in the power of partnership to drive industry change. As we embark on our joint venture together, we are confident that we can bring sustainable solutions forward, using the internal combustion engine, running on renewable fuels now and hydrogen in the future," says Lars Stenqvist, chief technology officer of Volvo Group. "We at Volvo are committed to driving the transition to decarbonize transportation and this new HPDI joint venture enables us to accelerate the adoption of combustion engines powered by hydrogen and renewable fuels for long-haul and off-road applications in partnership with Westport."
Three of the joint venture's board members have been appointed by each of Westport and Volvo Group. The initial board members are Andrea Fuder, chief purchasing officer of Volvo Group; Dan Hancock, chair of the board of directors of Westport; Sceli; Stenqvist; and Jan Ytterberg, senior advisor, Volvo Group.
The venture will operate as an independent entity with Westport contributing certain HPDI assets and activities, including related fixed assets, intellectual property and business. Volvo has a 45% interest, acquired for $28 million, plus up to an additional $45 million as an earn-out, depending on the subsequent performance of the joint venture.
