VANCOUVER -- Westport Innovations and Volvo have entered into an agreement to collaborate on heavy duty natural gas engines and the associated supply chain.

Westport will supply its Westport HD technology and work together with the Swedish engine manufacturer to qualify appropriate suppliers consistent with Volvo volume and quality expectations. The new natural gas engines are expected to meet future European emission requirements.

"High energy efficiency and low emissions of greenhouse gases are a key focus for our strategic development efforts as natural gas and its renewable fuels counterpart, biogas, quickly become the mainstream alternative fuel choice for heavy-duty engines," stated David Demers, CEO of Westport.

In July 2008, Westport announced an agreement with Volvo to integrate and test Westport's HD system on Volvo engines. Under the new agreements, Westport and Volvo will share program development expenses. The agreement requires Westport and Volvo to work to negotiate further agreements regarding certain elements of the development program. It also requires Westport and Volvo to satisfy certain milestones in order for the development program to continue, including the completion of the relevant technological, engineering and cost requirements and the completion of the further agreements.

Westport has been collaborating with engine makers around the world to expand their line of alternative fuel engines, such as compressed natural gas (CNG), liquefied natural gas (LNG), hydrogen and biofuels such as landfill gas.

Cummins Westport -- Westport's joint venture with Cummins -- manufactures and sells the world's broadest range of low-emissions alternative fuel engines for commercial transportation applications such as trucks and buses.

BTIC Westport -- Westport's joint venture with Beijing Tianhai Industry -- manufactures and sells LNG fuel tanks for vehicles, and Westport's joint venture with OMVL SpA -- Juniper Engines -- offers light-duty LPG engine solutions for industrial applications such as forklifts.