Caterpillar and Westport to work in conjunction to develop engines
Steve Fisher, the vice president of Caterpillar stated; “Many of our customers are asking for natural gas-powered equipment in order to reap the financial and environmental benefits.”
To put it into perspective, diesel costs $3.9 a gallon while natural gas costs $2 per million British thermal units. This is down from $10 in 2008.
Westport has been linked to GM and Caterpillar to develop these engines and shares rose 21 percent on Tuesday according to the Toronto Stock Exchange. Westport is also developing engines that use electric power, industrial machine, marine, and petroleum. Caterpillar plans to fund this project and production is scheduled to start in five years.
Shares of Westport jumped to C$27.15 on Tuesday and despite analysts who fear that companies might introduce competitive products in the future,continues to rise.