Bloomberg News

Westport, Clean Energy Surge on Tax-Credit Plan in Senate

November 18, 2011

(Updates trading in third paragraph.)

Nov. 15 (Bloomberg) -- Westport Innovations Inc., a developer of technology for natural-gas engines, and Clean Energy Fuels Corp. surged after three U.S. senators introduced a bill to provide tax credits for vehicles that run on the fuel.

The legislation would restore until the end of 2016 a tax credit for alternative-fuel vehicles that expired on Dec. 31, according to a press release from Senate Majority Leader Harry Reid, New Jersey Democrat Robert Menendez and North Carolina Republican Richard Burr. The bill would also expand the tax credit to cover more vehicles and provide incentives to develop natural gas as a fuel for cars.

Westport, based in Vancouver, rallied 8.6 percent to $31.22 for the biggest advance since Sept. 13. Seal Beach, California- based Clean Energy Fuels jumped 15 percent, the most since March 2010, to $13.50.

Westport has jumped 61 percent since March 29, the day before U.S. President Barack Obama promoted natural-gas vehicles in an energy-policy speech. A bill on the same subject in the House of Representatives, introduced April 6 by Oklahoma Republican John Sullivan, has 181 co-sponsors.

--Editors: Nick Baker, Michael P. Regan

To contact the reporter on this story: Matt Walcoff in Toronto at mwalcoff1@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net


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