Cummins to Acquire 50% of Momentum Fuel Technologies
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Engine maker Cummins Inc. announced it signed a letter of intent to acquire a 50% equity interest in Momentum Fuel Technologies, a provider of compressed natural gas fuel systems, from truck dealership Rush Enterprises Inc.
The proposed transaction is expected to close later this year. Financial details were not immediately available.
The joint venture will produce Cummins-branded natural gas fuel delivery systems for the commercial vehicle market in North America, according to the Columbus, Ind.-based company.
鈥淭his collaboration shows Cummins鈥 continued commitment to natural gas powertrains,鈥 Srikanth Padmanabhan, president of the engine business at Cummins, said in a release. 鈥淭his partnership will improve customer service for both CNG and renewable natural gas through an improved support network. We are thrilled to expand our network of clean and reliable power solutions.鈥
In March, Cummins launched the ISX12N+Endurant HD N, a fully integrated natural gas powertrain with a 12-speed automated transmission for heavy-duty customers.
The joint venture will offer aftermarket support through Rush Truck Centers dealerships and Cummins distributors, which will be able to service both the engine and the fuel delivery system.
鈥淭he immediate environmental benefits of CNG and RNG, combined with upcoming regulatory requirements, will drive growth in natural gas vehicles for the foreseeable future,鈥 said W.M. 鈥淩usty鈥 Rush, chairman and CEO at Rush Enterprises.
鈥淥ur natural gas spark-ignited combustion engines provide emissions lower than current EPA standards, 90% below on particulate matter and nitrogen oxides and 16% below on GHGs. They can achieve subzero emissions when using RNG,鈥 Cummins Vice Chairman Tony Satterthwaite recently told the U.S. Senate Committee on Energy and Natural Resources.
Rush said Cummins鈥 and Rush鈥檚 respective networks together represent more than 250 locations in the United States and Canada, and 鈥渨ill be equipped with certified technicians and access to a comprehensive CNG vehicle parts inventory.鈥
Earlier this year, self-driving truck technology company Plus announced a new initiative with Cummins to develop what Plus called the industry鈥檚 first driver-in, supervised autonomous trucks powered by natural gas.
Shawn Kerrigan, co-founder and chief operating officer at Plus, said its announcement marks 鈥渁 convergence of these two disruptive trends reshaping trucking 鈥 alternative fuel systems and autonomous technologies commercialized together.鈥
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