Westport Innovations (WPRT) announced it has signed an agreement with Volvo Powertrain, a subsidiary of Volvo AB, defining Westport’s responsibility to develop biogas and natural gas fueled engines for Volvo. Details won’t be released until later, but the companies have agreed to share the risks of development, Westport will be reimbursed for engineering costs and will generate revenue for every new nat  gas/biogas engine sold to Volvo.  The two companies first signed an agreement last winter and this new agreement expands and cements their relationship.

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“Our development and commercialization program with Volvo continues to develop, both in scale and scope” said David Demers, CEO of Westport Innovations. “Natural gas and biogas are quickly becoming the alternative fuel of choice for commercial vehicles and we expect this will lead to a new generation of clean, low-emission engines from Volvo. As a world leader in innovation and quality, Volvo is a great partner to work with to capture such a burgeoning market opportunity.”

Shares of WPRT are up about 5% today, but continue to look fairly weak technically and still in correction mode.