What happened
Shares of Westport Fuel Systems (WPRT 5.71%) soared Monday morning after a report by Reuters on Friday evening that Amazon (AMZN +3.47%) is ramping up orders for trucks and engines that run on natural gas.
Shares of clean fuel systems supplier Westport were trading 45% above Friday's closing price as of 10:50 a.m. EST Monday.
So what
Amazon has ordered more than 1,000 engines to be supplied by a joint venture between Westport and Cummins (CMI +0.58%), according to Reuters. The engines will run on renewable and non-renewable natural gas. Renewable natural gas (RNG) is made from methane derived from the breakdown of organic waste collected from farms, landfills, wastewater treatment plants, and the like.
Image source: Getty Images.
Now what
According to the report, Amazon has already ordered more than 700 class 6 and class 8 delivery trucks powered by compressed natural gas (CNG). "Amazon is excited about introducing new sustainable solutions for freight transportation and is working on testing a number of new vehicle types including electric, CNG and others," the company said in a statement reported by Reuters.
Westport offers a high pressure direct injection (HPDI) natural gas fuel system for heavy duty trucks. It formed the Cummins-Westport joint venture in 2001, and more than 80,000 Cummins-Westport engines are on the road, according to the company.
Amazon has said in its Climate Pledge agreement it plans to achieve net-zero carbon emissions by 2040. Westport shareholders today are cheering the inclusion of the company's technologies in those plans.
