The completion of the joint venture is contingent upon various closing conditions, including regulatory and government approvals. It is expected that the joint venture will commence operations following formal closure, which is anticipated in the second quarter of 2024.
HPDI is a cutting-edge fuel system technology applicable to internal combustion engines, offering the potential to replace greenhouse gas-emitting fuels, such as diesel, with carbon-neutral or zero-carbon alternatives like biogas or hydrogen.
Lars Stenqvist, Chief Technology Officer of Volvo Group, emphasizes the significance of decarbonization through internal combustion engines utilizing renewable fuels, particularly with HPDI. He notes that HPDI technology, already deployed in Volvo trucks for over five years, has proven its effectiveness in significantly reducing CO2 emissions in Liquified Biogas (LBG) applications and presents a promising avenue for hydrogen utilization.
As part of the agreement, Westport will contribute specific HPDI assets and opportunities, including related fixed assets, intellectual property, and business, to the joint venture. Volvo Group will acquire a 45% stake in the joint venture for approximately US$28 million, payable upon closure, with an additional potential investment of up to US$45 million based on the joint venture's performance.
