Power Solutions International (PSI) and Capacity of Texas announced a joint effort to make natural gas engines an attractive option for the medium-duty truck market. The agreement was announced last week at the Mid-America Trucking Show.

The alternatively-fueled PSI 8.8L, on-highway engine will be used in Capacity’s TJ5000 tractor, which is designed for warehouse and distribution applications.

“PSI is broadening its range of medium- to heavy-duty truck offerings,” said Jeremy Lessaris, director of marketing at PSI. “We are excited to continue that growth by collaborating with Capacity.”

Lessaris said the 8.8L “big block” replacement engine offers “20% across-the board improvements in power and 15% better fuel-efficiency over its most popular alternative, the now discontinued General Motors 8.1L.”

PSI designed the engine to run on a variety of fuels, including compressed natural gas, propane and gasoline. The engine produces 430 hp. and 600 lbs.-ft. of torque at 3,400 RPM.

Capacity’s TJ5000 tractor provides 81,000 lbs. of gross combined weight capability and is designed for a wide variety of yard, warehouse and distribution applications.

“Capacity is a terminal truck design leader because we listen to our customers,” said Phillip Ford, president of Capacity of Texas. “This collaboration with PSI helps us to continue pushing the cargo industry forward by offering cost-effective, alternative-fuel products that meet the demands of today’s market.”

Prior to the Mid-America show, PSI announced that it has signed a multi-year agreement with General Motors to provide a complete powertrain solution for medium-duty trucks and buses.

The agreement allows PSI to use GM’s 4.8L and 6L engines and associated transmission as the foundation for the powertrain. The engines’ represent additional power nodes complementing PSI’s 8.8L power system announced in 2012, the company said.

“PSI is proud of its longstanding relationship with General Motors,” said Gary Winemaster, CEO. “We have had great success in collaboration with GM in the industrial markets, and are confident this new extension into on-highway vehicles will be equally successful. There are many exciting opportunities for alternative fuel engines in the medium-duty truck and bus market, and we now have an extensive power system lineup to pursue these opportunities.”