Westport Innovations Inc. (NASDAQ: WPRT) is going to be a winner from the move that would generally be considered a goal of the Pickens Plan for an energy policy. The maker and designer of natural gas engines has signed agreements with Caterpillar Inc. (NYSE: CAT).
Under the pacts the companies will both co-develop natural gas technology for off-road equipment. Under the plan these will be for mining trucks and locomotives.
The press release notes that Caterpillar and Westport will combine their technologies and expertise to develop the natural gas fuel system. As far as who is responsible for the funding, it will be Caterpillar that funds the development program and Westport expects to participate in the supply of key components when these products go to market.
Ultimately this effort will apply to engines for electric power, industrial, machine, marine and petroleum applications worldwide. Unfortunately, the timing is not exactly going to bring revenues to Westport immediately as you can see here:
Development programs will start immediately for both new and existing engines, combustion technology and fuel systems. Commercial production is expected to begin in about five years.
JON C. OGG