Westport Unveils Next Generation High Pressure Direct Injection (Westport™ HPDI 2.0) System

  Westport Unveils Next Generation High Pressure Direct Injection (Westport™
                               HPDI 2.0) System

PR Newswire

VANCOUVER, Dec. 10, 2013

~New Release Provides Unparalleled Performance, Fuel Economy and Value~

VANCOUVER, Dec. 10, 2013 /PRNewswire/ - Westport Innovations Inc. (TSX:WPT /
NASDAQ:WPRT), engineering the world's most advanced natural gas engines and
vehicles, today unveiled its next generation of high pressure direct injection
technology platform dubbed "Westport™ HPDI 2.0." This new generation of the
class-leading natural gas technology will provide global vehicle and engine
original equipment manufacturers (OEMs) with a vertically integrated natural
gas solution with breakthrough price, performance, and fuel economy.
Developed to the most rigorous OEM quality standards, Westport™ HPDI 2.0
system components will be manufactured in state-of-the-art, high-quality
facilities, offer ready integration into OEM operations globally, and provide
an attractive way to reach scalable volume deliveries as natural gas markets
mature and grow.

"Where performance, emissions and efficiency matter, HPDI 2.0 offers benefits
that will be irresistible to fleet customers shifting to natural gas in their
operations," said David Demers, CEO of Westport. "As the potential for
natural gas is now apparent in all global vehicle and off-road markets, HPDI
2.0 will allow OEMs to introduce high performance, fully integrated products
that match state of the art diesel performance, but can be produced without
expensive and challenging investments in facilities, product development, and
testing."

Westport is now working with seven OEM applications with engine sizes ranging
from trucks to trains at various stages of development with the goal of
vertically integrated Westport™ HPDI 2.0 OEM product lines.

Background on Westport™ HPDI

Westport™ HPDI 2.0 is the only natural gas technology capable of delivering
performance and fuel economy equivalent to that of current high performance
diesel-fueled engines, but with diesel substitution of over 90%. This
combination of high performance and high efficiency is critical for heavy-duty
engines in demanding commercial applications.

Diesel engines have dominated commercial vehicle and heavy-duty off-road
applications for decades, despite higher initial costs for diesel engines
compared to gasoline engines, and the recent volatility and higher prices for
diesel fuel. Energy efficiency, engine durability, high torque, low
maintenance, and industry familiarity with the diesel engine mean that overall
life-cycle cost of operation have kept the engine a mainstay in commercial
vehicles.

However, Westport™ HPDI will allow diesel customers to switch to natural gas,
which is much cheaper than diesel fuel in most parts of the world, without
sacrificing performance or energy efficiency. Engines incorporating Westport™
HPDI 2.0 technology are engineered to be as similar to diesel-fueled versions
as possible, minimizing capital investment and operational changes in the
field.

Higher energy efficiency simply means less fuel burned, resulting in more
money that the operator can save, and lower greenhouse gas emissions. The
compression ratio of an engine with Westport™ HPDI is the same as the diesel
engine on which it is based, which results in fewer changes to engine
components and preservation of the fuel economy benefits associated with high
compression.

Westport's proprietary, patented HPDI technology utilizes the same Diesel
thermodynamic cycle used by diesel fuel. This Diesel cycle is inherently more
efficient than the Otto thermodynamic cycle used by spark ignited (SI)
gasoline and natural gas engines.Aside from the increase in efficiency,
typical Diesel cycle engines—including engines with Westport™ HPDI—do not use
a throttle to control the air-fuel ratio, as the gas directly injected into
the combustion chamber at the end of the compression stroke can burn over a
wide range of air fuel ratios.Current SI engines have to use a throttle to
meter the air to control the air/fuel mixture resulting in more constricted
air flow into the engine and reduced fuel efficiency.

Most current natural gas engines used in mobile applications require up to 30%
reduction in compression ratio and 15% to 20% reduction in peak torque output
to avoid the risk of engine-damaging knock, which reduces fuel economy and
performance. Late-cycle direct injection of fuel—a principle fundamental to
the Westport™ HPDI architecture—is the only combustion approach that
eliminates the danger of engine knocking. In SI gasoline and natural gas
engines, air and fuel are pre-mixed before entering the combustion chamber.
Knock can occur when combustion of the air/fuel mixture in the cylinder starts
off correctly in response to ignition by the spark plug, but one or more
pockets of air/fuel mixture explode outside the envelope of the normal
combustion front. SI engines that run on natural gas need a lower compression
ratio to reduce the chance of engine knock. The compression ratio must be low
enough to ensure combustion events do not begin until after compression is
complete and the spark plug is fired. Inevitably, lower energy efficiency is
the result, which means more fuel burned to achieve the same level of work.

Westport™ HPDI uses natural gas as the primary fuel along with a small amount
of diesel as an ignition source. The two fuels are not pre-mixed with the
intake air before they enter the combustion chamber so there is no risk of
engine knock and therefore no need to lower the compression ratio and peak
torque output.As compared to diesel fuel, directly injected natural gas burns
with a lower adiabatic flame temperature and has a low propensity to the
formation of carbon particles and therefore offers inherent nitrous oxide
(NOx) and particulate matter (PM) emissions benefits that provide more product
engineering flexibility to allow powertrain designers to increase potential
performance and customer value.

Animation of how Westport™ HPDI combustion works can be found on Westport's
website at: http://www.westport.com/is/core-technologies/hpdi

Equally important to vehicle performance and operability, fuel storage and
delivery is often ignored or treated as an afterthought when converting
engines to use natural gas. Westport vehicles and technology have logged
millions of miles over the past few years, and it is clear that high
performance natural gas engines will need sophisticated fuel delivery and
storage systems to fully exploit the potential of natural gas as a primary
fuel.

HPDI 2.0 continues the evolution of Westport natural gas storage and delivery
systems with a new generation of proprietary fuel tank, fuel pump, and system
controls that can match the vehicle range, performance, and driveability of
diesel whether the vehicle is a long-haul truck, a locomotive, or a ship.

Westport™ HPDI 2.0 is a complete architecture, offering OEMs flexibility to
differentiate their natural gas product lines easily while also maintaining
maximum commonality with their conventional diesel fueled products. We think
it's the future of natural gas. With the development of Westport™ HPDI 2.0 we
have captured many significant new proprietary technologies that will extend
the reach of our HPDI patent portfolio for the next 20 years. HPDI 2.0 is
protected by global patents. Westport has filed 42 patent applications for new
inventions related to Westport™ HPDI since 2007. Westport remains committed to
continuous innovation and improvement.

Westport™ HPDI 2.0 Features

Exclusive Westport^™ HPDI 2.0 systems features include:

  *Optimization of combustion and higher efficiency: Provides improved fuel
    economy, which results in faster payback compared with Westport's first
    generation HPDI product and compared to spark-ignited natural gas engines.
    Westport™ HPDI engine efficiency under highway operations is approximately
    44% compared with spark ignited natural gas engines at approximately 37%.
    This means approximately 15% to 20% fuel economy improvement compared to
    spark ignited natural gas engines under typical operating conditions.

  *Proprietary HPDI 2.0 dual common rail fuel injector: Designed for
    adaptability and multiple OEM engines ranging from 10 liter to 100-liter
    displacement (typically, over 50 kW per cylinder output) featuring higher
    performance and controllability, greater reliability, and longer life, and
    much lower cost. Unique concentric dual-needle design with
    electro-hydraulic actuation and control.

  *Proprietary on-engine gas fuel conditioning module: Designed for more
    precise pressure control for even lower engine emissions and better fuel
    economy. New sealing designed for longer durability. Smaller size for ease
    of packaging on the engine.

  *Redesigned electronic control systems: Allows full integration with
    existing engine and vehicle controls.

  *Improved components: Completely reorganized supply chain allows for
    reduced production costs and increased scalability for manufacturing
    alongside existing diesel-based components for multiple OEMs. For example,
    the new gas control module (GCM) has been reduced in cost by approximately
    60%.

  *System performance: High transient performance with integrated fuel
    storage and delivery systems that ensure proper fuel flow under all
    driving conditions, improving performance, driveability, and safety at
    lower cost.

  *Got brakes? By using the same high compression ratio as diesel engines,
    Westport™ HPDI engines deliver engine braking power equivalent to that of
    diesel engines which is critical in many trucking applications. The
    reduced compression ratio used in SI engines results in an approximately
    equivalent reduction in engine braking performance.

  *Compatibility: Westport™ HPDI 2.0 is designed for complete compatibility
    with state of the art commercial vehicles today. For example, by injecting
    fuel precisely into each cylinder, HPDI provides the same responsiveness
    and fast torque achievement as diesel engines, resulting in benefits such
    as an easier ability to be matched to automated manual transmissions
    (AMT).

  *Improved emissions profile: Westport™ HPDI 2.0 is designed to meet the
    latest in stringent emission regulations including Euro VI and EPA 2014
    and is the only natural gas technology that can control methane emissions
    in-cylinder avoiding costly methane aftertreatment. As an added benefit,
    the significant increase in efficiency of HPDI over traditional SI engines
    affords Westport™ HPDI 2.0 dramatically lower greenhouse gas (GHG)
    emissions than conventional natural gas or diesel engines.

  *Compliance and certification: In addition to the emissions certification
    for HPDI 2.0 engines, OEM's vehicles built with Westport™ HPDI 2.0
    technology will comply with applicable safety standards in North
    America—such as relevant Federal Motor Vehicle Safety Standards (FMVSS),
    National Fire Protection Association (NFPA), and Society of Automotive
    Engineers (SAE) standards—and their equivalents in Europe such as
    Regulation No. 110 of the Economic Commission for Europe of the United
    Nations (UN/ECE).

  *Heat rejection: while the higher compression of Westport™ HPDI 2.0 engines
    provide the heat necessary to auto-ignite their fuel, combustion in the
    Diesel thermodynamic cycle is more efficient, with more power and less
    heat produced than with the Otto thermodynamic cycle prevalent in SI
    engines. Westport™ HPDI engines operate at similar engine temperatures
    as diesel engines, reducing cooling challenges and reducing stress related
    reliability and durability challenges for other SI-based engine systems
    including turbochargers and exhaust treatment systems.

  *Proprietary liquefied natural gas (LNG) tanks: Westport™ HPDI 2.0 LNG tank
    solutions range from 70 to 150 US gallons and up to 20,000 gallons for off
    road applications. The new tank configurations feature lower costs,
    high-quality testing and validation, and new designs for structures
    enabling several vehicle-mounting configurations including behind-the-cab
    gantry and frame-rail packages to simplify vehicle design and production.
    Westport has invested over $1 million in HPDI 2.0 LNG tank testing and
    validation under extreme conditions to simulate the toughest environments
    for natural gas products.

  *New proprietary intelligent LNG fuel pump: Our redesigned cryogenic fuel
    pump is hydraulically driven and uses a single-stage, slow reciprocating
    architecture. This provides significantly lower cost, higher performance,
    and longer life and allows the use of fuel stations that deliver cold LNG,
    which improves vehicle range, and reduces station cost. The HPDI 2.0 fuel
    system is rated for delivering warm high pressure gas to truck engines
    with ratings up to 600 hp and to large off-highway engines up to 4,500 hp.
    Unlike traditional LNG systems, the full maximum flow rate is sustainable
    from the moment the truck is refilled to the moment the tank is empty.
    Because the pump is integrated into the tank module, there is no pump cool
    down time.

  *CNG capability: Every natural gas engine burns compressed natural gas
    (CNG).  Ultimately, the customer will decide which form of natural gas
    they wish to carry—either high pressure CNG or cold cryogenic LNG—based on
    a number of variables including but not limited to: weight of the load;
    weight of the fuel storage system; range required by the vehicle; and
    availability of CNG and LNG. The HPDI 2.0 system is architected to be
    compatible with LNG and CNG allowing the market to decide which storage
    method it prefers. Given the energy density of LNG compared with CNG, and
    Westport™ HPDI's ability to haul heavier loads over longer distances as
    compared with traditional natural gas engines, in most cases we expect
    HPDI applications will select LNG fuel storage.

Overall, Westport™ HPDI 2.0 will provide a compelling combination of
diesel-like power, torque, fuel efficiency, and engine braking performance in
a natural gas engine—making it ideal for almost all commercial freight
applications.

Migration Path for HPDI 1.0

Westport first generation HPDI systems have been delivered on more than 1,200
Peterbilt and Kenworth trucks since its first wide-scale introduction in 2010.
As noted in previous news releases and customer communication, Westport is
committed to the continuation of its class-leading support for all our
existing customers with the first generation of HPDI.

In partnership with Peterbilt and Kenworth dealers, Westport will be able to
offer compatible next generation system features to our existing customers, as
some HPDI 2.0 components are applicable to first generation HPDI. The benefits
are expected to be reduced costs, improved components, and increased
durability and performance. For customers, further information is available
from your Westport representative.

Pricing

Westport HPDI 2.0 has been designed for simplicity, performance and a
reduction in overall system costs. For the first time, Westport expects OEM
Westport™ HPDI vehicles to be competitively priced with SI-based systems. The
increased performance in torque and related power in Westport™ HPDI, combined
with the best fuel economy and related emissions profile and the fully
integrated engineered Westport™ HPDI 2.0 products will give OEMs and their
customers the ultimate natural gas engine and vehicle performance and
reliability, and strong economic value particularly in high fuel use
applications.

Westport™ HPDI 2.0 is in development now with a number of global OEMs and
Westport anticipates first availability of customer products in late 2014 and
2015.

Market Opportunity for HPDI Natural Gas Vehicles

According to the International Energy Agency, world oil demand for commercial
road freight and other heavy-duty transport modes, including rail, totalled
approximately 273 billion gallons in 2012. The U.S. Energy Information
Association predicts that the price of LNG will remain below the price of
petroleum diesel for at least the next two decades and be approximately 33%
below in 2035, with a gallon of diesel expected to be selling for $4.55
compared to a diesel gallon equivalent of LNG at $3.05. At these rates, if
the world changes the way it moves goods by shifting to natural gas, these
transport modes could save over $400 billion per year. The market for natural
gas in transportation in China is bourgeoning. According to the International
Energy Agency, natural gas demand in China's commercial road transport sector
will reach around three times higher than today's levels by 2035.

About Westport

Westport engineers the world's most advanced natural gas engines and vehicles.
More than that, we are fundamentally changing the way the world travels the
roads, rails and seas. We work with original equipment manufacturers (OEMs)
worldwide from design through to production, creating products to meet the
growing demand for vehicle technology that will reduce both emissions and fuel
costs. To learn more about our business, visit westport.com, subscribe to our
RSS feed, or follow us on Twitter @WestportDotCom.

Note: This document contains forward-looking statements. Forward-looking
information is typically identified by words such as "anticipate", "estimate",
"expect", "forecast", "may", "will", "could", "plan", "intend", "should",
"believe", "outlook", "project", "potential", "target" and similar words
suggesting future events or future performance. In particular, this press
release contains forward-looking information which includes statements
regarding the launch date, availability and pricing for the Westport HPDI 2.0
systems, place of Westport's HPDI technology in the future natural gas
technology ecosystem, demand for our products, the future success of our
business and technology strategies, intentions of partners and potential
customers, the performance and competitiveness of our products and expansion
of product coverage and future market opportunities. These statements are
neither promises nor guarantees, but involve known and unknown risks and
uncertainties and are based on assumptions that may cause our actual results,
levels of activity, performance or achievements to be materially different
from any future results, levels of activities, performance or achievements
expressed in or implied by these forward looking statements. These risks and
assumptions include risks and assumptions related to our revenue growth,
operating results, industry and products, the general economy, conditions of
and access to the capital and debt markets, governmental policies and
regulation, technology innovations, fluctuations in foreign exchange rates,
the availability and price of natural gas, global government stimulus
packages, the acceptance of and shift to natural gas vehicles in fleet
markets, the development of competing technologies as well as other risk
factors and assumptions that may affect our actual results, performance or
achievements or financial position discussed in our most recent Annual
Information Form and other filings with securities regulators. Readers should
not place undue reliance on any such forward-looking statements, which speak
only as of the date they were made. We disclaim any obligation to publicly
update or revise such statements to reflect any change in our expectations or
in events, conditions or circumstances on which any such statements may be
based, or that may affect the likelihood that actual results will differ from
those set forth in the forward- looking statements except as required by
National Instrument 51-102. The contents of any website, RSS feed or Twitter
account referenced in this press release are not incorporated by reference
herein.

SOURCE Westport Innovations Inc.

Contact:

Investor Inquiries:
Darren Seed
Vice President, Investor Relations & Communications
Westport 
Phone: 604-718-2046
Email:invest@westport.com

Media Inquiries:
Nicole Adams
Director, Communications
Westport
Phone: 604-718-2011
Email:media@westport.com
 
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