Clean Energy Fuels Spikes Amid CAT & WPRT Nat Gas Vehicle Deal
Shares of Clean Energy Fuels (NASDAQ: CLNE) are seeing much strength during Tuesday's trading session after related company, Westport Innovations (NASDAQ: WPRT) announced a deal with Caterpillar (NYSE: CAT).
Westport Innovations signed an agreement with Caterpillar to co-develop natural gas technology for off-road equipment, including mining trucks and locomotives. Caterpillar and Westport will combine technologies and expertise, including Westport™ High Pressure Direct Injection (HPDI) technology and Caterpillar's industry leading off-road engine and machine product technology, to develop the natural gas fuel system.
Caterpillar will fund the development program. When the products go to market, Westport expects to participate in the supply of key components.
"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.
"We are working with the global leader in engines, locomotives and off-road equipment to develop an attractive natural gas offering for their customers. 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. There is also a clear environmental incentive because of the reduced carbon emissions. Adding to the solid business case for this program is the potential to convert existing field units to natural gas – opening up a whole new market opportunity."
This could just be the start to a revolution in the heavy machinery, or even, the transportation industry, where natural gas vehicles could be a mainstay in the recent future. Both Clean Energy Fuels and Westport Innovations are a provider of natural gas as an alternative fuel for vehicle fleets.
Currently, shares of Clean Energy Fuels are trading up over 6.5% at $13.41 per share and Westport Innovations is up about 21% on the session.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.