Cummins completes 50% acquisition of Momentum
18 January 2022
Cummins Inc. and Rush Enterprises, Inc. announced that they have closed on Cummins’ acquisition of 50% equity interest in Momentum Fuel Technologies from Rush Enterprises. No financial details were provided.
First announced in June, the resulting joint venture combines Momentum Fuel Technologies’ compressed natural gas (CNG) fuel delivery systems and Cummins’ natural gas engines and powertrain expertise. It aims to enhance production of near-zero emissions natural gas powertrains by manufacturing Cummins-branded natural gas fuel delivery systems for the commercial vehicle market in North America.
When powered by renewable natural gas (RNG), using methane collected from organic waste as the primary fuel source, the engines can be credited with a neutral to negative carbon index, resulting in net greenhouse gas (GHG) emissions at or below zero, Cummins said.
“This collaboration shows Cummins’ continued commitment to natural gas powertrains and this partnership will expand and improve the service and support for CNG and RNG customers,” said Srikanth Padmanabhan, president of the Engine Business at Cummins. “The partnership will help us bring to market the highest quality, clean and efficient natural gas products, including the 15 L natural gas engine we announced in October.
“Our range of natural gas powertrains, including our 15 L engine, are important to advancing our path to zero emissions solutions strategy that reduces the greenhouse gas and air quality impacts of its products in a way that is best for our customers and all stakeholders. In order to truly achieve a zero-emission economy, we have to help customers transition seamlessly, which requires multiple solutions including natural gas, along with advanced diesel, electrified solutions, hydrogen fuel cell and other technologies.”
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. The partnership between Cummins and Rush Enterprises will benefit customers by providing them with access to an extensive CNG vehicle parts and service network; both Cummins’ and Rush Enterprises’ respective networks, which together represent over 250 locations in the US and Canada, will be equipped with certified technicians and access to a comprehensive CNG vehicle parts inventory.
“Due to upcoming regulatory requirements, corporate ESG goals and the environmental and economic benefits of RNG vehicles, many customers are seeing the value in these vehicles, which we believe will drive growth for the foreseeable future,” said W.M. “Rusty” Rush, chairman, chief executive officer and president, Rush Enterprises, Inc. “With this joint venture, we are able to continue to serve CNG and RNG customers throughout the country with both Cummins’ and Rush Truck Centers nationwide network of support locations and portfolio of aftermarket solutions.”