Westport Innovations (WPRT) and Clean Energy Fuels Corp (CLNE) Team Up; Should You?

Back in November of 2012 GE and Clean Energy Fuels agreed to expand the LNG infrastructure to allow trucks to operate off of the fuel across the US. In 2012, Clean Energy Fuels completed the first stage of installing 70 natural gas stations across the US. The goal is to implement another 70 to 80 stations along the major truck routes to ensure an easy transition from diesel to natural gas. It is also comforting knowing Clean Energy Fuels is backed by T. Boone Pickens and now with this new deal with Westport, which was financed through common stock, he is indirectly a supporter of Westport. Clean Energy Fuels is the largest provider of natural gas fuel transportation in the US and that is likely not going to change in the near future as the barrier to entry is high with the cost to implement the fueling stations.

Bottom line

It is also encouraging to see Westport Innovations Inc. (USA) (NASDAQ:WPRT) enter into a marketing agreement with Clean Energy Fuels Corp (NASDAQ:CLNE) now that they are no longer competing in the natural gas engine world and focusing on what they do best. The marketing campaign will help increase the natural gas vehicle market and will enable Westport to provide fuel credits for newly purchased vehicles. Both companies will benefit with this type of collaboration.

We are only in the first few innings of this energy transformation as it is currently estimated that there is enough natural gas in the US alone to last us the next 105 years at the current consumption rate. Westport and Clean Energy Fuels are current buy opportunities for the long-term investor looking for a pure natural gas energy play for their portfolio. They both dominate their niche and have agreed to work together to enhance the long-term prospects of natural gas.  If you to want to be a part of this changing industry then I encourage you to dig a little deeper into these two companies as they are at the forefront of this transformation.

Scott Daily owns shares of Westport Innovations. The Motley Fool recommends Clean Energy Fuels, Cummins, and Westport Innovations. The Motley Fool owns shares of Cummins and Westport Innovations. Scott is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Westport Innovations and Clean Energy Fuels Team up; Should You? originally appeared on Fool.com and is written by Scott Daily.

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