Volvo, Westport Ink Deal for Natural Gas Technology

Westport Innovations said it will supply Swedish truck maker Volvo Group with components for heavy-duty natural gas engines.

Under the agreement, Westport will become “a Tier 1 Development Supplier for [Volvo’s] heavy-duty natural gas engines and associated supply chain,” the Vancouver, British Columbia, company said in a statement.

A spokesman for Volvo Trucks North America declined to say whether the agreement with Westport extended to Volvo’s U.S. truck-making operations.

“We don’t speculate on future products or plans,” Volvo spokes-man Jim McNamara told TT. He referred inquiries about the Westport deal to Volvo Group headquarters in Sweden, which did not respond to requests for comment by press time.

Under the agreement, Westport will supply Volvo with its Westport HD technology. The Westport HD system combines a modified diesel engine with Westport’s own technology, including a “liquid spark plug,” which uses a small amount of diesel to facilitate combustion of liquefied natural gas in the engine cylinder, Westport said.

Westport’s Nov. 16 announcement follows a deal struck this summer between the two companies, under which Volvo agreed to test Westport components in its truck engines.

American Trucking Associations has expressed doubts about the viability of natural gas in the longhaul trucking market but said that it could be viable for trucking companies with shorter lengths of haul.

“Natural gas currently is not a viable solution for most longhaul trucking operations,” ATA said in a written statement submitted earlier this month to the U.S. Senate Energy and Natural Resources Committee. “However, natural gas could be an acceptable fuel alternative for certain shorthaul applications.”

A natural gas engine can add $40,000 to $70,000 to the cost of a new truck, ATA said.

Volvo Trucks North America unveiled a prototype natural-gas-powered truck in 2008, but the company has not yet announced plans to offer natural gas engines as an option on its tractors. Parent company AB Volvo has other alternative-fuel trucks in the prototype stage. Mack Trucks began offering refuse trucks with natural gas engines in June.

Daimler Trucks North America, through its Freightliner brand, and Paccar Inc. already offer natural gas engines in certain tractor models. Navistar Inc., maker of International-brand trucks, does not offer natural gas engines for over-the-road trucks.