The two companies will combine their technologies that include Westport’s High Pressure Direct Injection (HPDI) technology and Caterpillar’s off-road engine and machine product technology, to develop the natural gas fuel system.

Westport Innovations CEO David Demers said this is a significant opportunity that has the potential to transform important segments of the global off-road equipment industries.

"We are working with the global leader in engines, locomotives and off-road equipment to develop an attractive natural gas offering for their customers," Demers added.

"The substantial price difference between natural gas and diesel fuel is resulting in a strong financial incentive to enable off-road applications to take advantage of low natural gas energy costs without sacrificing operational performance."

Caterpillar’s Large Power Systems Division vice president Steve Fisher said, "The program positions Caterpillar to become the first manufacturer to bring HPDI technology to the high horsepower off-road market, offer the broadest product line of natural gas-fueled machines and equipment, and capitalize on the attractiveness of natural gas as an alternate mobile fuel – all within the shortest time frame for our customers."

The companies will also develop natural gas technology for Caterpillar’s off-road engines, which are used in a variety of electric power, industrial, machine, marine and petroleum applications.

Electro-Motive Diesel, a subsidiary of Progress Rail Services, will develop the natural gas-powered locomotives for Caterpillar.

Caterpillar will fund the development program and Westport expects to participate in the supply key components once the products are ready to be marketed.

Westport Innovations Inc. supplies solutions for engines to operate on clean-burning fuels and reduce greenhouse gas emissions.