Westport Fuel Systems Inc. has entered into definitive development and supply agreements with Weichai Westport Inc. (WWI) to develop, to market, and to commercialize a heavy-duty, natural gas engine featuring the Westport HPDI 2.0 technology, based on one of Weichai Power Co., Ltd.’s (Weichai Power) heavy-duty engine platforms. Weichai Power and WWI are affiliates of the Weichai Holding Group.
HPDI 2.0 consists of a fully integrated “tank to tip” solution, with a cryogenic tank and integral high pressure liquefied natural gas (LNG) pump mounted on the chassis of the truck and plumbed to the engine where fuel pressure is regulated before being supplied to the injectors via high pressure fuel rails.
At the heart of the engine is a patented injector with a dual concentric needle design. It allows for small quantities of diesel fuel and large quantities of natural gas to be delivered at high pressure to the combustion chamber. The natural gas is injected at the end of the compression stroke.
Westport HPDI 2.0 provides GHG reductions of 20-100% on a well-to-wheel basis while preserving the same performance as a diesel engine.
Under the new development program for the Chinese market, Westport Fuel Systems will support the adaptation of the Westport HPDI 2.0 technology onto one of Weichai Power’s heavy-duty engine platforms, building on the years of experience WWI has with Westport HPDI technology.
The new natural gas engine will be certified to meet China VI emissions standards and is expected to be launched in the second half of 2019.
Once in production, Westport Fuel Systems will supply critical HPDI 2.0 system components to WWI, each of which is required for every HPDI 2.0 engine sold by WWI. WWI has committed to purchase HPDI 2.0 system components required for a minimum of 18,000 HPDI 2.0 engines between the launch date and the end of 2023.
In addition, Westport Fuel Systems will receive a royalty payment from WWI for each engine sold in consideration of the HPDI license rights provided to WWI. WWI will market and sell the heavy-duty natural gas engines with the Westport HPDI 2.0 technology to various truck OEMs.
As the demand for natural gas vehicles has grown significantly over the years, the demand for better performing, cleaner, and more efficient engines has also increased. Westport HPDI 2.0 technology provides the only proven and commercially available solution that can deliver on all of these demands and provide up to 20% GHG reduction, while using a more economical fuel.
This, combined with the extensive liquefied natural gas (LNG) fueling infrastructure network in China, will provide the domestic Chinese market with a viable clean technology solution that we believe will become the leading powertrain solution in the world for heavy-duty long-haul trucks.—Dr. Tan Xuguang, Chairman of Weichai
Westport Fuel Systems will supply the HPDI 2.0 system components on a limited exclusivity basis. Under the terms of the agreement, Westport Fuel Systems is precluded from selling these system components for use in commercially available engines sold in China with the exceptions of certain global OEMs and their affiliates, for a minimum period of five years from the date of execution of the development agreement, subject to WWI meeting defined volume targets. Other key terms of the agreements, such as pricing, have not been disclosed for competitive reasons or due to confidentiality restrictions.