Vancouver-based alternative fuel engine technology company Westport Innovations Inc. (TSX:WPT; NASDAQ:WPRT) announced this morning that it has acquired Alternative Fuel Vehicle Sweden AB (AFV) of Gothenburg, Sweden.
The deal is valued at approximately US$7.6 million.AFV is the sole supplier of natural gas fuel systems to Volvo Car Co.
“Natural gas technology is playing an increasingly important role in European automotive markets, where there is a longstanding interest in cleaner, more economical transportation solutions,” Ian Scott, president of Westport Light Duty, said in a news release.
“We have seen steadily growing demand in Sweden, particularly from corporate and fleet customers. As fuelling infrastructure continues to expand and more automakers offer natural gas options, we expect to see that trend continue in Europe.”
According to Westport, Volvo dealers in Sweden have offered a bi-fuel 231-hp 2.5 litre turbocharged version of the V70 wagon, with the natural gas fuel system engineered and installed by AFV, since 2009.
The Volvo V70 Bi-Fuel has been approved as a company car for Swedish businesses. Swedish drivers can fuel up at more than 100 public natural gas filling stations.
The company notes that AFV now aims to expand into other European markets.
Calls to Westport were not returned by press deadline.
Jenny Wagler
@JennyWagler_BIV