Soros-backed Westport Innovations Hooks Up With Caterpillar For Natural Gas Vehicles (WPRT; CAT; CLNE)

Westport is up 19.72% at $26.66.
It looks like this deal could replace-and-more any loss from the possible defection of Cummins who is developing their own natty engine.
Pickens-back Clean Energy Fuels has made a sympathy move, up 6%.
From Green Car Congress:

Westport and Caterpillar to co-develop natural gas technology for off-road equipment

Westport Innovations Inc. has signed agreements with Caterpillar Inc. to co-develop natural gas technology for off-road equipment, including mining trucks and locomotives.

Caterpillar and Westport will combine technologies and expertise, including Westport High Pressure Direct Injection (HPDI) technology and Caterpillar’s off-road engine and machine product technology, to develop the natural gas fuel system. Caterpillar will fund the development program. When the products go to market, Westport expects to participate in the supply of key components.

Development programs will start immediately for both new and existing engines, combustion technology and fuel systems. Commercial production is expected to begin in about five years.

This is a significant opportunity that has the potential to transform important segments of the global off-road equipment industries. The substantial price difference between natural gas and diesel fuel is resulting in a strong financial incentive to enable off-road applications to take advantage of low natural gas energy costs without sacrificing operational performance. There is also a clear environmental incentive because of the reduced carbon emissions. Adding to the solid business case for this program is the potential to convert existing field units to natural gas – opening up a whole new market opportunity.

—David Demers, CEO of Westport Innovations

While the agreements initially focus on engines used in mining trucks and locomotives, the companies will also develop natural gas technology for Caterpillar’s off-road engines...MORE 

While definitely good news the stock has over-reacted, possibly due to desperate shorts trying to cover.
I mean look at the size of the gap up (via Yahoo Finance):