Agreement Provides Future Scalability and Cost Effective Production Once Threshold Volumes Have Been Achieved
Westport Innovations Inc., a global supplier of natural gas engines, has entered into a Supply Agreement with Cummins to allow manufacturing of the Westport HD 15 litre engine in a Cummins manufacturing facility in Jamestown, New York. “The Supply Agreement helps accelerate our scalability and cost reduction at over 1500 units per year,” said Clark Quintin, President of Westport HD. The agreement assures the company of available, scalable and cost effective supply for its 15L natural gas engines featuring Westport technology.
The new HD Supply Agreement provides Westport with the ability to have its Westport technology-equipped heavy duty engines produced in a Cummins manufacturing facility when a minimum threshold sales volume of at least 1,500 engines in any 12-month period has been achieved by Westport.
The supply agreement term is for three years beginning from the date the first Westport technology-equipped engine is shipped by Cummins after Westport meets the minimum volume threshold. The term automatically renews if the threshold volumes continue to be achieved. If Cummins does not ship a Westport technology-equipped engine within the next five years, the agreement will terminate.
Westport Innovations Inc. engines operate on clean-burning fuels such as compressed natural gas (CNG), liquefied natural gas (LNG), hydrogen, and renewable natural gas (RNG or biomethane) fuels such as landfill gas and help reduce greenhouse gas emissions (GHG). Westport technology offers 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.
(This article compiled using information from a Westport innovations Inc. press release)
