Westport Innovations Inc. (USA) (NASDAQ:WPRT) is another natural-gas company that has not made a single cent of profit since its inception, just like Clean Energy Fuel. However, the future for this company is extremely bright. This company is one of the very engine players that have taken a serious interest in the natural-gas industry. In fact, it is the only engine technology provider that is a pure-play on natural gas (100% exposure to the fossil fuel).
Westport Innovations Inc. (USA) (NASDAQ:WPRT) has established partnerships with most of the major OEMs operating in the United States. In the light-duty category, the company is working with Ford Motor Company (NYSE:F) to produce engines for F-series trucks. Westport also signed an agreement with General Motors Company (NYSE:GM) to develop advanced engineering technology for engines in the light-duty trucks category. Further, Westport provides natural-gas engines to Volvo’s V7 wagons. This allows Westport Innovations Inc. (USA) (NASDAQ:WPRT) to reach the European market as Volvo has 16% market share in Sweden and 1.5% in Europe.
Perhaps, there’s nothing as important for the company’s success as its joint venture with Cummins Inc. (NYSE:CMI) which is known by the name of Cummins Westport, or CWI. Through CWI, Cummins has also contributed to the gradual nourishment of the natural-gas market. The truck market is desperately waiting for CWI’s new 12-liter engine that is expected to be rolled out in the next couple of months. Many companies like United Parcel Service, Inc. (NYSE:UPS) have committed to buy trucks fitted with this 12-liter engine. This might be the second most successful product after the super hit 8.9-liter engine that CWI introduced in 2009.
Final word
Both Clean Energy and Westport Innovations Inc. (USA) (NASDAQ:WPRT) are poised to benefit from an increased natural gas adoption rate. With, the natural-gas prices below $ 4 and the recent rally in the WTI Crude oil prices (crossed the $90 barrier), natural gas remains a very attractive option for the final users that are waiting for companies like Clean Energy and Westport to provide them with adequate infrastructure and a wide variety of natural-gas vehicles to conveniently switch to natural gas.
Zain Abbas has no position in any stocks mentioned. The Motley Fool recommends Clean Energy Fuels, Cummins Inc. (NYSE:CMI), and Westport Innovations. The Motley Fool owns shares of Cummins and Westport Innovations. Zain is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article Will Natural Gas Become a Popular Fueling Option in the US? originally appeared on Fool.com and is written by Zain Abbas.
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