Westport Fuel Systems Inc. announced it has been designated as the supplier of LPG systems to a global original equipment manufacturer. This is in addition to the previously announced production supply agreement, adding new Euro 7 vehicle platforms planned for production by the OEM.

This is forecasted to generate EUR 63 million in total revenue from 2025 to 2028. This increases the revenue generated from LPG fuel system supply agreements for Euro 6 and 7 programs with this OEM to approximately EUR 255 million.

“We are pleased to become the exclusive supplier of LPG systems to this leading OEM customer and look forward to continuing our commitment to deliver our LPG systems for their LPG-fuelled vehicle platforms,” said David M. Johnson, CEO of Westport Fuel Systems. “As a leader in providing a diverse portfolio of high-quality alternative fuel systems, we are driving cleaner performance and gaining market share, as LPG powered vehicles are a very affordable path to meet European regulations for lower emissions.”

Westport will be supplying its Autogas system solutions for this OEM’s Euro 6 vehicle applications starting Q4 2023. “As a cost-competitive alternative fuel solution to achieve sustainability goals, LPG is an especially compelling option in markets like Europe where the refuelling infrastructure is well established,” stated Westport Fuel Systems in a press release.

“Westport continues to focus on top- and bottom-line improvements. As a reminder, late 2023 will mark the beginning of our LPG fuel system production and sales to our global OEM customer, a relationship that continues to grow with the recent announcement of our expanded Euro 7 scope. The price advantage of LPG versus petrol and the shrinking cost to access lower-carbon transportation is driving demand. Growth in key markets to meet the increasing demand for both affordable and low-emission transportation solutions is a key focus for Westport,” commented the company in a different statement, where it shared its financial results for the 2Q 2023.

Source: Westport Fuel Systems

16 August 2023