Westport Innovations Inc., a developer of natural-gas engines, climbed the most in more than three years after unveiling an agreement with Caterpillar Inc. to develop fuel systems for off-road vehicles.
Westport, based in Vancouver, rose 22 percent to close at C$28.17 in Toronto, the biggest increase since November 2008. The shares have declined 17 percent this year.
Cooperation with Peoria, Illinois-based Caterpillar will initially focus on development of natural-gas engines used in mining trucks and locomotives and the possible use of Westport’s High Pressure Direct Injection technology, Westport said today in a statement. Caterpillar, the world’s largest maker of construction and mining equipment, will fund development under the agreement, Westport said.
“The substantial price difference between natural gas and diesel fuel is resulting in a strong financial incentive to enable off-road applications to take advantage of low natural gas energy costs without sacrificing operational performance,” Westport said in the statement.