Westport has assured available, scalable and cost effective supply for its 15L natural gas engines featuring Westport technology.
Under the deal, Westport technology-equipped heavy duty engines will be produced in a Cummins manufacturing facility when a minimum threshold sales volume of at least 1,500 engines in any one year period has been achieved by Westport.
The three-year supply agreement starts from the date the first Westport technology-equipped engine is shipped by Cummins after Westport meets the minimum volume threshold.
Westport HD president Clark Quintin said the supply agreement helps accelerate the company’s scalability and cost reduction at over 1500 units per year.
"At scale, Westport HD would be able to recognize the sale of the engine in addition to on- and off-engine components increasing revenue per system," Quintin said.
The term automatically renews if the threshold volumes continue to be achieved.
Westport said if Cummins does not ship a Westport technology-equipped engine within the next five years, the agreement will terminate.
