Mr. Anders Johansson reports

WESTPORT JOINS FORCES WITH TRANSPORTATION AND ENERGY PARTNERS TO DEMONSTRATE ICE HYDROGEN-POWERED TRANSPORT IN SWEDEN

Westport Fuel Systems Inc. has successfully completed a heavy transport demonstration, with KAJ Inrikes and others, of its H2 HPDI-fuel-system-equipped prototype truck hauling a trailer filled with IKEA home-furnishing products in Almhult, Sweden. This is the second validation of the H2 HPDI system in a heavy haul application with a major fleet in the last 60 days and represents an important step in accelerating decarbonization in the heavy-duty transport industry.

During the event, the complete hydrogen ecosystem was represented, including green hydrogen production, hydrogen filling stations, Westport's unique HPDI technology, vehicle manufacturers, fleet operators and the end-user, IKEA, as a buyer of sustainable transportation services.

Ola Henriksson, senior product manager at Scania, commented: "We had a great day participating in the showcasing of the Westport H2 HPDI fuel system technology and are appreciative of this collaborative initiative, and the hospitality of KAJ Inrikes and the surrounding players in the hydrogen ecosystem. Scania is staying true to its purpose of driving the shift towards more sustainable transport systems, and the technology of using hydrogen in the internal combustion engine is an interesting decarbonization pathway because it represents an attractive solution with high maturity and quick time to market."

The collaboration between Westport and key transportation and energy partners includes:

• KAJ Inrikes, fleet operator, a green-focused haulage company, performing transport for IKEA and other key customers in the Almhult and Jonkoping area.
• Smalandslogistik, large fleet owner, a long haulage and distribution company, that has identified the environment and decarbonization as important areas where it can contribute meaningful impact through its daily business.
• Metacon AB, hydrogen fuel provider, a Sweden-based supplier of energy technology, including electrolyzers and reformers for refining biogas into fossil-free hydrogen.
• Hydri AB, hydrogen infrastructure company, building and operating a complete network of green hydrogen refuelling stations in Sweden.

Westport's H2 HPDI fuel system for internal combustion engines results in a robust and affordable solution with higher power and torque than the same engine running on diesel fuel. Moreover, the European Commission has recommended a definition of a zero-emission vehicle (ZEV) as part of the upcoming HD CO2 regulation -- Westport expects H2 HPDI-powered vehicles to meet this ZEV definition for a range of heavy-duty commercial vehicles. In this collaborative effort, the Westport HPDI-fuel-system-equipped truck operating on hydrogen pulled a trailer filled with approximately 40 tons of IKEA home-furnishing products, demonstrating the high performance of the IC hydrogen engine.

Kaj Johansson, president of KAJ Inrikes, commented: "As the first heavy transport hauler in Sweden to be Euro VI-compliant, we take emissions reduction very seriously. We are pleased to have participated in this demonstration as it illustrates our commitment to IKEA, and all our customers, to support their transport decarbonization goals." He continued, "Westport's H2 HPDI fuel system is an affordable and efficient technology because it keeps the current driveline and compression ignition engine platform while delivering the high performance we need at low cost for decarbonization in long-haul trucking."

"Heavy hauling is recognized as amongst the most challenging applications within transportation to decarbonize. These heavy transport fleets require sustainable technologies that are viable for their operations, as well as practical and affordable for today's market," said Anders Johansson, vice-president, heavy-duty OEM (original equipment manufacturer) for Westport Fuel Systems. "We are encouraged to see a global retail giant such as IKEA field testing our H2 HPDI prototype truck as part of its decarbonization continuum, experiencing for themselves the robustness of the system and its real-life benefits."

"We are happy to dedicate one of our lanes, operated by KAJ Inrikes, to test the hydrogen-powered vehicle," said Michal Silhacek, category land manager, IKEA supply chain operations. "We look forward to exploring the possible role of this technical solution in our future zero-emission transportation."

"The Westport H2 HPDI technology left us very impressed," commented Nicklas Svensson, senior manager at Smalandslogistik. "Its high efficiency, powerful performance and the potential of long-range operations is a very attractive solution. Our confidence is bolstered by its foundation on a traditional powertrain, ensuring minimal investment in new workshop facilities. Additionally, the adaptability of the system to biogas is a significant advantage, aligning with our vision of fuel self-sufficiency because we can utilize local biomass and excess electricity, transforming them into fuel for our truck fleet."

Christer Wikner, president and chief executive officer of Metacon, commented: "It was great to see Westport's technology in action today. This means that hydrogen can now power heavy-duty vehicles and deliver higher efficiency, power and torque than the corresponding diesel engine. The introduction of high-performance internal combustion engines for hydrogen will be able to accelerate the transformation of the transport sector without customers having to adapt to any real change other than the fuel used in their trucks."

"Westport's technology enables heavy-duty vehicles to be powered by green hydrogen in an internal combustion engine and this is a milestone that is in line with Hydris's ongoing rollout of Sweden's largest network of hydrogen stations," said Peter Ena, CEO of Hydri AB. "We are excited to contribute to a transition where high-performance hydrogen-powered vehicles become the norm, and Westport's progress confirms that we're on the right track. Together, we are strengthening the foundation upon which to build a sustainable transport sector."

About Westport Fuel Systems Inc.

At Westport Fuel Systems, the company is driving innovation to power a cleaner tomorrow. The company is a leading supplier of advanced fuel delivery components and systems for clean, low-carbon fuels such as natural gas, renewable natural gas, propane and hydrogen to the global transportation industry. The company's technology delivers the performance and fuel efficiency required by transportation applications and the environmental benefits that address climate change and urban air quality challenges. Headquartered in Vancouver, Canada, with operations in Europe, Asia, North America and South America, Westport serves its customers in more than 70 countries with leading global transportation brands.

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