Westport, Tata Motors launch natural gas engine featuring Westport EMS


Westport Innovations (WPRT +4.2%) and India's Tata Motors (TTM) launch a new spark-ignited natural gas 3.8L turbocharged engine featuring Westport's WP580 engine management system; designed to support many engine configurations, the WP580 EMS also is scheduled to be applied to TTM's 5.7L engine targeting medium-duty applications in late 2014.

Also, WPRT unveils its newest gas enhanced methane diesel proprietary technology that "has shown a significant breakthrough on dual fuel performance."

Comments (10)
  • LeahyInvestor
    , contributor
    Comments (163) | Send Message
     
    Westport should benefit from Russia trying to convert public fleets 50% Natural gas in cities over 1 million people. Not sure how much business they currently are doing now but the world largest reserve of Natural gas is in Russia.
    12 Feb 2014, 10:43 AM Reply Like
  • andypochta1
    , contributor
    Comments (1305) | Send Message
     
    while I am recently long Westport, the Russians were using this technology years before Westport was around, most likely they have their own solutions for conversions. The biggest market is US and it's in its infancy.
    18 Feb 2014, 11:24 AM Reply Like
  • canb888
    , contributor
    Comments (639) | Send Message
     
    Why in India which is very short of Natgas? Should do it in the US in a big way.
    12 Feb 2014, 11:50 AM Reply Like
  • kevinconway
    , contributor
    Comments (2754) | Send Message
     
    would be interesting to know how much up front they will be spending on this deal...have a bunch going at once...hope they do not get into cash flow issues...continue to stay out for now.
    12 Feb 2014, 11:53 AM Reply Like
  • ed8099
    , contributor
    Comments (4) | Send Message
     
    My guess India purely because of the potential customer base. It's a polluted country like china (air pollution specifically in this case, to show my point, but as well you'd never catch me swimming the Ganges River, mind...), and it has a massive population (second or third on the planet). Imagine the number of Diesel engines there...and growing. To that end, I think going to China may prove Westport's best move ever. That place is disgusting with air pollution, and even though the Chinese regime is internally powerful as a state power, it needs to improve myriad internal social and infrastructure issues. Good start is burning a transpo fuel 20-30% cleaner than gasoline and/or diesel. I don't know the extent of Chinese rail, and don't really care to find out because I'm already long WPRT, but I'm willing to bet a few pints of beer or some single malt that China has a larger fleet of medium and heavy trucks than it really wants, due to a lack of rail infrastructure in that huge nation...my $0.02.
    12 Feb 2014, 02:03 PM Reply Like
  • BraxtonComer
    , contributor
    Comments (109) | Send Message
     
    I think a lot of it has to do with how cheap can their partner build the engine, and how fast will the country be able to build a natural gas fueling network for trucks. Those are the two big risk with this company, the only reason they are having financial issues is because it is taking so long for the technology to catch on. The partnership in China is growing faster than CWI, maybe the india partnership will grow faster as well. Maybe this is a sign that Westport is going to focus more on emerging markets, because for whatever reason they seem to adapt quicker.
    12 Feb 2014, 06:27 PM Reply Like
  • ed8099
    , contributor
    Comments (4) | Send Message
     
    I didn't mean to take the India discussion to China in my first post, but I did. I agree with Braxton - emerging market. Couple that with a 1.22 billion population. Bang.
    12 Feb 2014, 09:25 PM Reply Like
  • ed8099
    , contributor
    Comments (4) | Send Message
     
    Check out the CIA World Factbook on Energy. India imports fully 25% of their natgas requirement. 70% of their electricity is fossil fuel based, but this country of 1.22 billion (#2) only pumps 990,000 barrels of crude a day. For comparison, our much smaller 0.320 billion population here in the US uses I think 18 million barrels per day. Numbers may be inaccurate but they are certainly ballpark.

     

    That tells me coal is king in India. The EIA states 41% of its energy consumption is coal based, and natgas at 8%. India is the 6th largest LNG importer in the world and overall energy consumption is estimated to double in the next 5 years. My point...India must import tremendous amounts of natgas whether it wants to or not, and WPRT in India is a savvy move.

     

    Lastly, while India states it wants to become energy independent by 2030 (source: EIA), I offer that so does the USA, but we haven't exactly made giant strides (fracking held aside, but long term success there depends on a congress and administration elected by the people, albeit with tremendous ability to spin whatever into whatever and get/stay in office anyway), so I'd not expect India to get anywhere close anytime soon...no, I'm not jaded, just a realist.

     

    EIA is an excellent non-financial source of info
    12 Feb 2014, 09:26 PM Reply Like
  • BraxtonComer
    , contributor
    Comments (109) | Send Message
     
    They will have to import natural gas for their electrical needs, I think the question is what are the price differences between natural gas and oil in that part of the world. Also fracking success in other countries is a big issue. For some reason China and some other countries are not having much success with natural gas fracking, despite china having enormous estimated reserves. If China can ever start producing a lot of natural gas through fracking, that could be a really big deal for Westport.
    12 Feb 2014, 10:12 PM Reply Like
  • ed8099
    , contributor
    Comments (4) | Send Message
     
    They are probably trying to cut corners like they always do.
    13 Feb 2014, 03:08 PM Reply Like
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