Westport Innovations (WPRT) announced this morning it has acquired a Sweden based company that provides natural gas fuel systems to Volvo for $7.6 million.  Alternative Fuel Vehicle Sweden AB (AFV) of Gothenburg, has been installing the nat gas fuel systems for the bi-fuel V70 wagons since 2009 and aims to expand into other markets with the help of Westport.

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"Natural gas technology is playing an increasingly important role in European automotive markets, where there is a longstanding interest in cleaner, more economical transportation solutions," said Ian Scott, President of Westport Light Duty(LD). "We have seen steadily growing demand in Sweden, particularly from corporate and fleet customers. As fuelling infrastructure continues to expand and more automakers offer natural gas options, we expect to see that trend to continue across Europe."

According to studies, there are now more than 1.4 million nat gas vehicles in Europe with 4000 filling stations.  Those numbers are expected to grow as infrastructure continues to improve and tough CO2 standards take effect next year.

Technically, WPRT remains a top green stock following a bullish breakout to a new all time high in September.  The stock is in digestion mode right now as key support levels remain intact.