Caterpillar has signed an agreement with Westport Inc. to co develop natural gas technology for Caterpillar's engines. The company will incur R and D costs under the agreement and the commercial production is expected to start within the next five years. According to a news release, natural gas offers a significant price differential compared to diesel which is presently used in most of Caterpillar's engines and natural gas engines are targeted to offer similar levels of operational effectiveness as diesel engines.
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