UPDATE 1-Westport, GM sign second deal for natural gas engines

June 27 Wed Jun 27, 2012 8:36am EDT

June 27 (Reuters) - Westport Innovations Inc , which develops natural gas-powered engines, said it signed a second deal with General Motors Co to develop a natural gas engine technology for light-duty vehicles.

Westport earlier this month signed an agreement with Caterpillar Inc to develop engines that can use cheaper natural gas instead of diesel to power mining trucks and locomotives.

Natural gas, as a vehicle fuel, produces lower emissions of nitrogen oxides, particulate matter and greenhouse gases than petrol or diesel.

Westport and GM announced their first deal last June.

U.S.-listed shares of Westport rose about 6 percent to $34.40 in premarket trade on Wednesday. The stock closed at C$33.33 on Tuesday on the Toronto Stock Exchange.

GM shares closed at $19.85 on Tuesday on the New York Stock Exchange.

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