Westport Goes North (TSE: WPT)

TORONTO, ONTARIO - Westport Innovations (NASDAQ: WPRT) (TSE:WPT), which trades both on the NASDAQ and the Toronto Stock Exchange, took a monstrous leap forward today, rising over 9% on both exchanges. As Westport continues to lead the natural gas industry forward, its share price seems to be following suit. Lately, natural gas prices have come down with no bottom to be seen, as supply of the precious substance is overwhelming the demand. However the low prices for natural gas is even greater incentive for companies to switch to Westport technology for running their cars, trucks, and trains. Wesport Innovations is at the forefront of making natural gas engines, which can immensely save company money on fuel. While oil trades at $100+ per barrel, natural gas is around the mid $2 range per 1000 cubic feet. This could alleviate the fuel surcharge that companies pay just for using diesel or gasoline. Natural gas also has the environmental advantage of burning much cleaner than oil, not to mention coal. Furthermore, North America has hundreds of years of reserved of natural gas, meaning that even if demand increases, the price of using natural gas as a bridge fuel will no doubt remain cheaper than using oil. Since the natural gas is domestically produced in North America, transportation costs are also minimized thus saving even more dollars. A switch to natural gas engines, which has not received any government response in the US, will help Americans by saving them hundreds of dollar per month, it will save companies thousands of dollars per day, and all of the needed infrastructure in the country will help to create hundreds of thousands of jobs. However, since governments in North America are not in tune with no-brainer of an energy solution, the transition has been going slow. This is where Westport Innovations comes into play.

Westport has not waited for the much needed government subsidies, but is taking measures into their own hands. Westport Innovations works closely with leading engine manufacturers and key suppliers from all over the world, in preparation to bring natural gas engines to the market. Westport's strong management team has actually teamed up with the behemoths in the industry, including engine maker Cummins (NYSE: CMI), in order to work together to help the American economy. Later this year, Westport plans to have natural gas engines for trains on the market. Furthermore, the large natural gas companies in the US and Canada are highly on board with the idea of using natural gas to fuel vehicles. Otherwise within a few year these large natural gas companies will be shipping domestic fuel to other countries who are embracing natural gas, while the US continues to pay a high price for oil.

While the US government is asleep at the wheel, Westport continues to take matters into their own hands. Natural gas engines should start gaining momentum throughout 2012 thanks to Westport and a host of forward-looking North American companies who see the viability and massive potential for the adoption of natural gas engines.