Westport and EDL of Australia to Study HPDI for Off-Road Engines

    Business Editors

    VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 8, 2005--Westport Innovations Inc. (TSX:WPT) today announced that it has signed a Memorandum of Understanding with Energy Developments Limited (EDL) of Queensland, Australia, to co-operatively explore business opportunities for Westport's proprietary high pressure direct injection (HPDI) natural gas technology in off-road engine applications in Australia.

    Based in Australia, EDL is a leading independent power producer, owning and operating over 60 power generation, renewable energy and waste fuel-to-energy facilities across Australia, the United States, Europe, and Asia with a total power generation capacity of 420 megawatts. EDL currently provides distributed electric power for remote communities and mining sites, and has signed a power purchase agreement, subject to conditions precedent, which will include the construction of its first liquefied natural gas (LNG) production facility in Western Australia.

    Western Australia has extensive reserves of natural gas and supplies about 10 per cent of the world's LNG. Natural gas in Australia is one-third to one-half of the cost in North America, and a number of mine sites also have access to coal-seam methane (CSM) that could be converted to LNG. This price advantage over diesel fuel offers strong economic incentive for fuel consumers to consider ways to use LNG in their operations.

    Australian mines operate a significant portion of the world's mine trucks that typically haul over 200 tonnes per truckload. These vehicles utilize high horsepower diesel engines that generate upwards of 2,000 horsepower and consume large quantities of fuel as they operate around the clock, every day of the year.

    "Using natural gas in mining operations and other off-road applications in Australia offers significant benefits in terms of fuel cost savings and emission reductions. We believe that HPDI is ideally suited to the demanding industrial environments such as mine trucks", said Bruce Hodgins, Westport's Vice-President for Market Development. "With EDL's customer base in the mining sector in Australia, and their interest to provide LNG fuel to these remote sites, we are encouraged that we will be able to build a strong business case for this initiative."

    HPDI delivers the high performance and high efficiency requirements of off-road applications such as mine trucks and railway locomotives. With HPDI engines, approximately 95% of the diesel fuel consumed in a diesel engine is displaced with natural gas. A typical mine truck with a HPDI natural gas engines could achieve emission reductions of approximately 14 tonnes of nitrogen oxides, 650 kilograms of particulate matter, and 950 tonnes of greenhouse gases per year.

    Westport Innovations Inc. is the leading developer of technologies that allow engines to operate on clean-burning fuels such as natural gas, hydrogen, and hydrogen-enriched natural gas (HCNG). Westport has technology development alliances in place with Ford, MAN, BMW and Isuzu, and an ownership interest in Clean Energy, the largest provider of vehicular natural gas in North America. Cummins Westport Inc., Westport's joint venture with Cummins Inc., manufactures and sells the world's widest range of low-emissions alternative fuel engines for commercial transportation applications such as trucks and buses.

    EDL is a public company listed on the Australian Stock Exchange (ASX:ENE). It undertakes all aspects of power project development, including initial feasibility studies, design, site construction, financing and long-term operations and maintenance.

    Note: This document contains forward-looking statements about Westport's business, operations, technology development or to the environment in which it operates, which are based on Westport's estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, or are beyond Westport's control. Consequently, readers should not place any undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Westport disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    Westport Innovations Inc. (TSX:WPT)

--30--CB/na*

CONTACT: Westport Innovations Inc. Alexis Zehr Investor Relations & Communications (604) 718-2046 invest@westport.com www.westport.com OR Energy Developments Limited Chris Laurie Managing Director +61-7-3275-5650 chris.laurie@edl.com.au www.energydevelopments.com

KEYWORD: NEW YORK AUSTRALIA INTERNATIONAL CANADA ASIA PACIFIC INDUSTRY KEYWORD: ENERGY TRANSPORTATION HARDWARE AUTOMOTIVE ENVIRONMENT PRODUCT MARKETING AGREEMENTS SOURCE: Westport Innovations Inc.

Copyright Business Wire 2005