Volvo displays carbon-dioxide-free trucks

Volvo displays carbon-dioxide-free trucks

The Volvo Group is the first vehicle manufacturer to produce seven demonstration
trucks that can all be driven without emitting any environmentally harmful
carbon dioxide. These trucks were exhibited for the first time today in
Stockholm and are equipped with diesel engines that have been modified to
operate on seven different types of renewable liquid and gaseous fuels. “Volvo
is part of the climate problem, but today we have shown that carbon-dioxide free
transports are a possibility and that we as a vehicle manufacturer both can and
will be part for the solution to the climate issue,” says Leif Johansson, CEO of
the Volvo Group.

The seven Volvo FM trucks are equipped with Volvo's own 9-liter engines that
have been specially modified by the Group's engineers to illustrate the
possibilities of carbon-dioxide-free transport. According to the widely
publicized Stern report, approximately 14 percent of total global carbon-dioxide
emissions will come from the transport sector, with road transport accounting
for a total of 10 percent. However, there is no information on the percentage of
these emission levels that in turn originate from cargo transport. A calculation
based on European conditions and statistics, whereby passenger cars represent
60% of carbon-dioxide emissions and cargo transport for the remaining 40%,
indicates that cargo transport will account for about 4-5% of total global
carbon-dioxide emissions.

Part of the solution

“As one of the world's largest manufacturers of heavy trucks, diesel engines and
buses, the Volvo Group is part of the climate problem,” says Leif Johansson, CEO
of Volvo. “But environmental issues are one of the areas which we have assigned
the very highest priority, and based on our resources and knowledge, we both can
and will be part of the solution.”

The seven trucks exhibited in Stockholm can be operated on the same number of
different renewable fuels and/or combinations of fuels: biodiesel, biogas
combined with biodiesel, ethanol/methanol, DME, synthetic diesel and hydrogen
gas combined with biogas. Since all of these fuels are produced from renewable
raw materials, they provide no carbon-dioxide contributions to the ecosystem
when combusted and, accordingly, do not impact the environment.  

“The diesel engine is an extremely efficient energy converter that is perfectly
suited to many different renewable fuels, liquid or gaseous,” says Jan-Eric
Sundgren, member of Volvo Group Management and Senior Vice President, Public and
Environmental Affairs. “With our know-how in engine technology and our large
volumes, we can manufacture engines for several different renewable fuels, and
also create possibilities for carbon-dioxide-free transports in such other
product areas as buses, construction equipment and boats.”

Volvo is ready

However, the supply of different renewable fuels is significantly limited and
there is no large-scale production or distribution for the majority of the
alternatives that could be utilized in carbon-dioxide-free transports.

“With these vehicles, we have shown that Volvo is ready, that we possess the
technology and the resources for carbon-dioxide-free transport, but we cannot do
this alone,” says Leif Johansson. “We also require large-scale production of
renewable fuels and putting such production in operation requires extensive
investments in research and development, and also well-defined, common
guidelines from authorities in as many countries as possible.”

Own analyses of fuels

Volvo has carried out its own analyses of the renewable fuels that are most
suitable for carbon-dioxide-free transports. In these analyses, Volvo considered
important aspects such as the impact on the environment, energy efficiency, the
efficiency level in the use of the land for cultivating crops for the respective
fuels, the amounts of the different fuels that can potentially be produced, the
level of vehicle adaptation required in purely technical terms, the costs of the
fuels and how easy it is to distribute the fuels.

“We know that in the foreseeable future there will be insufficient biomass or
renewable fuels to fully replace fossil fuels,” says Jan-Eric Sundgren. “That is
why it is important that decisions on the production of future fuels are
preceded by such comprehensive assessments - otherwise there is the risk that we
focus on too many and quite simply unsuitable alternatives, which will delay the
introduction of carbon-dioxide-free transport.”

Promising results from gasification

Despite the current shortage of both biomass for the production of renewable
fuels, and finished fuels, the Volvo Group does not view carbon-dioxide-free
transport as a utopian idea. One of the reasons for this is the second
generation of renewable fuels that are produced through gasification and that
generate both large volumes and a greater number of fuels to choose between. 

“Gasification is a promising line that may lead to a significantly larger
substitution than today's technology,” says Leif Johansson. “Our own history has
taught us that much of what we once thought impossible we have since been able
to solve a few years later. This can be applied to such important areas as
energy efficiency and exhaust emission control. I am an optimist and believe in
a similar trend in carbon-dioxide-free transport.”

Seven different cars - seven different fuels

The trucks exhibited in Stockholm were operated on the seven following renewable
fuels/fuel combinations:

Biodiesel
Biodiesel is produced by the esterification of vegetable oils. Rapeseed oil and
sunflower seed oil are the most common raw materials in Europe.

Biogas
Biogas is a gaseous fuel that is largely comprised of hydrocarboned methane.
Biogas can be extracted in sewage treatment works, at garbage dumps, and at
other sites at which biodegradable materials are found. 

Biogas + biodiesel
Biogas + biodiesel are combined in separate tanks and injection systems. A small
percentage (10 percent) of biodiesel, or synthetic diesel, is used for achieving
compression ignition. The biogas in this alternative is in a cooled and liquid
form that increases its range. 

DME - Dimethyl ether
Dimethyl ether is a gas that is handled in liquid form under low pressure. DME
is produced through the gasification of biomass.

Ethanol/Methanol
Methanol is produced through the gasification of biomass and ethanol through the
fermentation of crops rich in sugar and starch.  

Synthetic Diesel
Synthetic Diesel is a mixture of synthetically manufactured hydrocarbon produced
through the gasification of biomass. Synthetic diesel can be mixed with
conventional diesel fuel without problem.  

Hydrogen gas + Biogas
This vehicle operates on a combination of hydrogen gas and biogas whereby the
hydrogen gas is mixed in small volumes with compressed biogas (8% volume).
Higher mixture levels are also possible. The hydrogen gas can be produced
through the gasification of biomass or electrolysis of water with renewable
electricity.

August 29, 2007

For reporters who want more information, please contact Mårten Wikforss, +46 31
66 11 27 or +46 705 59 11 49.

Information about renewable fuels is available at:
http://www.volvo.com/group/global/en-gb/Volvo+Group/ourvalues/environment/renewa
ble_fuels/

Video material featuring the trucks is available at Volvo's broadcast room:
http://www.thenewsmarket.com/volvogroup

Photos are available to download in the Volvo Group image gallery:
http://www.volvo.com/group/global/en-gb/newsmedia/imagegallery/NewsImages/

The character of the information is such that AB Volvo (publ) may be under an
obligation to disclose it in accordance with the Swedish Securities and Clearing
Operations Act and/or the Swedish Financial Instruments Act. The information was
disclosed to the media on 0829,2007 at 10.30 a.m.



The Volvo Group is one of the world's leading manufacturers of trucks, buses and
construction equipment, drive systems for marine and industrial applications,
aerospace components and services. The Group also provides complete solutions
for financing and service. The Volvo Group, which employs about 93,000 people,
has production facilities in 18 countries and sells their products in more than
180 markets. Annual sales of the Volvo Group amount to about 27 billion euro.
The Volvo Group is a publicly-held company headquartered in Göteborg, Sweden.
Volvo shares are listed on the Stockholm stock exchange and on NASDAQ in the US.