The world’s largest supplier of diesel engines for trucks has made a cash investment in Burnaby-based fuel-cell company Loop Energy.
Loop Energy, which develops fuel-cell products for truck and bus manufacturers, isn’t saying how much Cummins spent. But spokesperson Debby Harris said the cash investment was “meaningful and what we would have hoped for from a strategic investor.”
She added that the investment was for equity in Loop Energy, and Cummins has the right to acquire more in the future.
“Cummins’ investment in Loop Energy affirms the positioning of our company and technologies to meet the demand for a cost-effective alternative to the internal combustion engine in commercial trucking,” said Ben Nyland, CEO of Loop Energy.
“This new investment by Cummins is solid evidence of the traction we are gaining in the market through investments, customer orders, and vehicle demonstration programs.”
Cummins vice-president of corporate strategy Thad Ewald said the company is committed to “next-generation trucking technologies.”
“We look forward to working with Loop Energy to further validate the provision of zero-emissions fuel-cell range extenders for customers,” Ewald said.
The investment is Cummins’ second into fuel-cell companies this year, following a $290-million acquisition of Ontario-based Hydrogenics earlier in September.
