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Here's Why Westport Innovations Stock Jumped 16% in 2 Days

By Jason Hall - Oct 7, 2015 at 11:56AM

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Westport's venture with Cummins just announced a near-zero NOx emissions engine. Mr. Market seems pleased.

What: Natural gas engine technology leader Westport Innovations Inc.'s ( WPRT -6.25% ) stock is up 9% today (Oct. 7), and more than 18% over the past two market days. 

So what: Westport's joint venture with Cummins, called Cummins Westport, just announced a near-zero NOx emissions version of its very popular ISL G natural gas engine, the ISL G NZ. This is a pretty big deal, since this new engine meets stringent long-term emissions standards for particulates like NOx, a major cause of urban air pollution. 

Cummins Westport will begin manufacturing the ISL G NZ in April 2016, and it will be available as a "first fit" (sold with new vehicles) engine, as well as a replacement for vehicles currently running the Cummins Westport ISL G natural gas engine. 

Now what: This is a big deal and a definite positive for Westport. The ISL G engine has been hugely successful, with major market share in the transit and waste-removal vehicle segments. But even with that past success, this lower-emissions version of that engine is not exactly a game changer.

Westport still faces the same cash-burn challenges, and the uncertainty of low oil prices weighing on the rate of adoption of natural gas engines, especially in heavy-duty trucking and automobiles. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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