Here is the news and I would bet it will be a strong gapper in the morning.
WESTPORT INNOVATIONS INC ("WPT-T;WPIVF-L") CUMMINS ENGINE CO INC ("CUM-BHDNPQX") - New Cummins Pact
Westport Innovations Inc. of Vancouver announced that it has reached a new agreement with Cummins Engine Company, Inc. of Columbus, Indiana regarding cooperative development of Westport's natural gas fuel system for stationary power generation. The agreement is for the second-phase of development of Westport's power generation engine fuel system and is scheduled to expire on December 31, 2000.
The agreement calls for Cummins, the world's largest producer of diesel engines over 200 horsepower, to prepare a worldwide market study and business case for the application of Westport's technology to the power generation market. The business case will include analysis of pricing, margin and profit expectation of the two companies and potential royalty payments to Westport. The agreement also calls for additional testing of Westport's technology on stationary power generation diesel engines.
The new agreement replaces the first-phase power generation engine development memorandum of understanding between Cummins and Westport that expired on December 31, 1999. Each company can terminate the project before expiry if technical or marketing results are unfavourable.
"This new agreement reflects the progress that Westport has made in advancing its natural gas fuel technology in the important power generation application," said David Demers, President and Chief Executive Officer of Westport. "Preliminary testing of Westport's system in a Cummins engine has met our expectations of lower emissions while maintaining diesel performance and efficiency."
The power generation project is separate from a previously disclosed project with Cummins to collaborate on development of a low-emissions, natural gas fueled engine for heavy-duty trucks. Westport is also working with Ford Motor Company of Dearborn, Michigan to develop the enabling technologies for a natural gas fuelled diesel engine for light-duty vehicles.
For power generators and trucks, Westport's patented High Pressure Direct Injection (HPDI) technology uses clean-burning natural gas as the primary fuel. The natural gas is ignited by a separate, prior injection of a small amount of diesel fuel. The technology is intended to retain all of the performance and fuel economy of diesel engines while meeting future U.S. Environmental Protection Agency emissions targets for oxides of nitrogen (NO*) and particulate matter (PM). Westport's fuel systems are also intended to significantly reduce carbon dioxide (CO(2)) emissions to meet proposed global warming initiatives. |
