Westport Innovations (WPRT), provider of natural gas engine technology, received a major boost on Wednesday following the announcement of a co-marketing program with Royal Dutch Shell (RDS-A). Understandably, Westport itself rose 19.4% on the day. Perhaps less understandable was the 13.2% rise seen by Clean Energy Fuels (CLNE).
The agreement between Westport and Shell launches a co-marketing program in North America aimed at providing an integrated commercial solution for customers in the natural gas vehicle field. You can read a full description of the program in the press statement from Westport here. In essence, the agreement aims “at providing customers a better economic case when purchasing and operating liquefied natural gas–powered vehicles (LNGVs) by consolidating key value chain components such as fuel supply, customer support and comprehensive maintenance into a single, user-friendly package”.
Key quotes from the press statement from each of the two companies point to the intended strength of the agreement:
Firstly, David Demers, CEO of Westport Innovations said: “As a result of this initiative, we believe the use of natural gas as a fuel for transportation will accelerate. The North American launch is an important first step with Shell and we look forward to the continued proliferation of our advanced technology products and integration services.”
“We at Shell believe that natural gas, because of its abundance and strong environmental profile, is a destination solution in the transportation fuels space. This alliance with Westport will allow us to bring these benefits to market in a way that I believe can potentially transform fuel consumption in the heavy-duty vehicle segment for years to come,” said José-Alberto Lima, Shell Vice President for LNG & Gas Monetization.