Westport Fuel Systems Awarded €38 Million Program to Supply LPG Fuel Systems to a Global OEM

Rhea-AI Summary

Westport Fuel Systems has secured a contract to develop liquefied petroleum gas (LPG) systems for a global OEM, projected to generate €38 million in revenue by 2025. Production is set to commence in Q4 2023, focusing on Euro 6 applications. The company aims to advance alternative fuel adoption across vehicle classes while striving to meet future Euro 7 regulations. According to CEO David M. Johnson, this initiative supports energy security and sustainable transportation, as LPG is a clean-burning and cost-effective alternative fuel.

Positive

• Secured a contract forecasted to generate €38 million by 2025.
• Production set to begin in Q4 2023, enhancing revenue prospects.
• Focus on Euro 6 applications aligns with market demand for low-emission vehicle technologies.

Negative

• Dependence on future regulatory acceptance, including Euro 7 compliance.
• Risks associated with supply chain disruptions affecting production timelines.

VANCOUVER, British Columbia, July 11, 2022 (GLOBE NEWSWIRE) -- Westport Fuel Systems Inc. (“Westport” or the “Company”) (TSX:WPRT / Nasdaq:WPRT), a global leader in low-emissions alternative fuel transportation technologies, announced today that it has been awarded a program to develop and supply liquefied petroleum gas (LPG) systems for a number of vehicle applications for a global original equipment manufacturer (OEM). The deal is forecasted to provide €38 million in revenue through the end of 2025, with production expected to begin in Q4 2023.

Westport will provide fuel systems solutions for the Euro 6 applications to this OEM, supplying the entire LPG system from the fuel tank to the fuel injectors. In parallel, Westport is also developing fuel systems to respond to future regulations including the proposed Euro 7 standards. Driving alternative fuel technology adoption from light-duty to heavy-duty applications is a keystone of Westport’s OEM technology supply strategy.

“We are proud to supply this industry leading OEM and to serve the growing global market for affordable alternative fuel systems,” said David M. Johnson, Chief Executive Officer of Westport Fuel Systems. “Our proven clean technology solutions support energy security and sustainability, by providing affordable, low carbon fuel options for transportation.”

LPG and bio-LPG, also known as propane or autogas, is a clean-burning alternative fuel used to power light-, medium- and heavy-duty vehicles. LPG fueled vehicles are a cost-competitive low-emissions alternative to vehicles that use gasoline (petrol) or diesel, and the technology satisfies stringent regulatory requirements for emissions reductions. LPG fueled vehicles are permitted to drive in emissions-restricted traffic zones in Europe.

Cost-competitive alternative fuel solutions such as LPG are a compelling option to reduce greenhouse gas emissions in markets like Europe where refueling infrastructure is well established. Alternative fuels for transportation applications are increasingly in demand globally as an affordable, efficient, and clean alternative.

About Westport Fuel Systems
Westport Fuel Systems is driving innovation to power a cleaner tomorrow. The company is a leading supplier of advanced fuel delivery components and systems for clean, low-carbon fuels such as natural gas, renewable natural gas, propane, and hydrogen to the global automotive industry. Westport’s technology delivers the performance and fuel efficiency required by transportation applications and the environmental benefits that address climate change and urban air quality challenges. Headquartered in Vancouver, Canada, with operations in Europe, Asia, North America and South America, the company serves customers in more than 70 countries with leading global transportation brands. For more information, visit www.wfsinc.com.

Forward Looking Statements
This press release contains forward-looking statements, including statements regarding the growth of the global market for alternative fuel systems, the factors responsible for such growth, the expected revenue, timing of revenue and expected date for commencement of production of the referenced LPG fuel system and components. These statements are neither promises nor guarantees but involve known and unknown risks and uncertainties and are based on both the views of management and assumptions that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activities, performance or achievements expressed in or implied by these forward-looking statements. These risks, uncertainties and assumptions include those related to COVID-19, its duration, effects, and government responses thereto, the general economy, solvency, governmental policies and regulation, the demand for LPG fuel system and components, supply chain disruptions, as well as other risk factors and assumptions that may affect our actual results, performance or achievements or financial position discussed in our most recent Annual Information Form and other filings with securities regulators. In addition, continuing, or new effects and the impact of the COVID-19 outbreak, are unknown at this time and could cause actual results to differ materially from the forward-looking statements contained herein. Readers should not place undue reliance on any such forward-looking statements, which speak only as of the date they were made. We disclaim any obligation to publicly update or revise such statements to reflect any change in our expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in these forward-looking statements except as required by National Instrument 51-102. The contents of any website referenced in this press release are not incorporated by reference herein.

Media Relations T: +1 947-339-8097  media@wfsinc.com

Investor Relations T: +1 604-718-2046 invest@wfsinc.com

FAQ

What is the revenue forecast for Westport Fuel Systems from the new LPG contract?

Westport Fuel Systems is projected to generate €38 million in revenue from the new LPG contract by 2025.

When will Westport begin production of its LPG systems for the OEM?

Production of the LPG systems is expected to commence in Q4 2023.

What applications will Westport's LPG systems serve?

The LPG systems are designed for Euro 6 applications across various vehicle types.

How does LPG compare to traditional fuel types in terms of emissions?

LPG is a clean-burning fuel that serves as a cost-effective, low-emission alternative to gasoline and diesel.

What challenges does Westport face with the new LPG program?

Westport faces potential risks related to regulatory compliance and supply chain disruptions.