Caterpillar, Westport Innovations Team Up to Develop Natural Gas Truck Technology
By Rip Watson, Senior Reporter
This story appears in the June 11 print edition of Transport Topics. Click here to subscribe today.
Westport Innovations Inc. and Caterpillar Inc. last week announced plans to collaborate on the development of natural gas technology for mining and off-road trucks as well as for freight locomotives, marking the latest trend in the spread of natural gas as an alternative fuel source.
The June 5 statement from Westport said the two companies would “combine technologies and expertise” such as Westport’s high-pressure direct-injection technology. The statement said the companies expect it will take about five years before commercial production can be started.
For Westport, the move complements its joint venture with Cummins Inc. that provides on-highway natural gas-powered engines for heavy trucks. For Caterpillar, which abandoned the on-highway diesel engine market more than three years ago, the move is its first broad natural gas collaboration effort.
The partnership agreement develops as natural gas prices have sunk to their lowest level in about a decade, and diesel prices remain close to $4 per gallon.
“This agreement does more than pair two leaders in their respective industries,” said Steve Fisher, vice president of Caterpillar’s large power systems division. “Many of our customers are asking for natural gas-powered equipment in order to reap the financial and environmental benefits.”
“The program positions Caterpillar to become the first manufacturer to bring Westport HPDI technology to the high horsepower off-road market,” said Fisher.
The statement said Caterpillar, Peoria, Ill., will pay the costs of developing the natural gas fueling system, with Westport functioning as a supplier of key components. The nature of the components and the amount of Caterpillar’s investment weren’t specified.
Initially, development will be focused on mining trucks and railroad locomotives, the statement said. In addition, natural gas power will be developed for off-road engines in industrial, electric power, machine and marine applications.
“This is a significant opportunity that has the potential to transform important segments of the global off-road equipment industries,” said David Demers, CEO of Westport Innovations, Vancouver, British Columbia. “The substantial price difference between natural gas and diesel fuel is resulting in a strong financial incentive to enable off-road applications to take advantage of low natural gas energy costs without sacrificing operational performance.”
Demers also noted lower emissions from natural gas-powered engines and said there “is the potential to convert existing field units to natural gas — opening up a whole new market opportunity.”
Fisher added that the move will give Caterpillar the ability to capitalize on natural gas as an attractive alternative fuel across a broad product line of machines and equipment.
Caterpillar owns Electro-Motive Diesel, which makes freight locomotives. The unit known as EMD was once a subsidiary of General Motors Corp. It was spun off in 2005 to an investor group and later sold to Caterpillar’s Progress Rail Services unit.
“As a part of Caterpillar, we have the ability to be on the forefront of developing cutting-edge solutions for our industry, and we look forward to continuing those advancements for years to come,” said Billy Ainsworth, president and CEO of Electro-Motive Diesel.
Westport’s market presence in natural gas has been focused on the Cummins Westport joint venture that in 2011 produced revenue almost 40% above the prior year.
Its customers include Navistar, Freightliner, Kenworth, Peterbilt and Volvo.
Westport also has its own 15-liter natural gas engine for Class 8 trucks.
At the same time that fleets are showing greater interest in natural gas, the first steps are being taken this year in a network of natural gas fueling stations to support intercity runs with natural gas-powered equipment.
