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    Cummins, Westport to dissolve NG engine JV

Summary

Over its 20-year life, the JV developed and sold more than 30,000 natural gas engines. [Image: Cummins]

by: Dale Lunan

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Cummins, Westport to dissolve NG engine JV

US-based Cummins and Westport Fuel Systems of Vancouver said February 7 they have reached an agreement that will see the dissolution of a joint venture that has pursued the development of natural gas engines for trucks for the past 20 years.

Under terms of the agreement, Cummins will acquire Westport’s interest in the joint venture and continue to operate the business as sole owner. The joint venture agreement, first formalised in March 2001 and amended in February 2012, expired on December 31, 2021.

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Over the 20-year life of the JV, it developed medium-duty natural gas engines ranging from 150 hp to more than 400 hp. More than 30,000 of the engines have been sold worldwide.

As part of the agreement, Cummins will also purchase Westport’s interest in the joint venture’s intellectual property, for proceeds estimated at US$20mn. They will also conduct an initial technical assessment of Westport’s hydrogen high pressure direct injection system for potential use on hydrogen applications under development by Cummins.