Westport will be reimbursed for engineering and related development costs for products requested by Volvo. In addition, Westport will arrange for or supply gas-related components.
The company expects to generate revenue on each new natural gas and biogas engine sold.
"Our development and commercialization program with Volvo continues to develop, both in scale and scope," said David Demers, CEO of Westport Innovations. "Natural gas and biogas are quickly becoming the alternative fuel of choice for commercial vehicles and we expect this will lead to a new generation of clean, low-emission engines from Volvo."
The current natural gas engine development program will result in an engine that will meet future emission requirements and be commercialized according to a mutually agreed timeline.
Westport will also be working directly with the Volvo AB brands to help identify market development opportunities and assist in the infrastructure build-out of biogas and natural gas where needed.
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