Governments wanting a 70% reduction in carbon emissions from heavy-duty trucks will find the greatest bang for their buck by subsidizing trucks fueled by renewable natural gas rather than electric trucks.
The EU, China, and India seem to have settled on natural gas trucks as their number one solution for the 2020s.
India seems to favor natural gas for all vehicles including buses. China and California may favor electric buses.
The supply of renewable natural gas is increasing tremendously by the month, from Canada to the United States to the EU and India. China has ramped up its imports of LNG tremendously, and tariffs on the fuel do not seem to be at risk of rising anymore.
China is looking at a carbon tax, which would send sales of natural gas trucks to the moon.
So, government regulations and climate concerns are propelling the sales of Westport Fuel Systems's HPDI 2.0 system, which emits nearly zero nitrogen oxide pollution and far less carbon than the IVECO (CNHI) competition.
Chinese Approval Possible Any Day Now
The pandemic slashed WPRT's stock from about $2.50 to about $0.70. The pandemic and presumably trade tensions slowed the approval of the Westport-Weichai HPDI 2.0 truck in China. Sales of this truck will, in the vision of management, propel the company's revenues as well as lowering costs via greater economies of scale.
According to management, approval could happen any day now, and the HPDI 2.0 truck has already passed all of the tests for approval.
So, the approval literally depends on what used to be called "paperwork."
What happens to WPRT stock upon approval is unclear. The one clear thing is that it will go up. Many certainly believe that the stock value will skyrocket beyond $2.50, as WPRT will have its facilities fully open again and will have Weichai
