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Going Fossil Free

Towards fossil free transport

We expect the global landscape for fuel to change over time, driven by the prerequisites of different applications, markets and regions. The Internal Combustion Engine (ICE) will continue to be an alternative, as the world moves towards fossil free propulsion systems like battery electric (BEV), fuel cells (FCEV) and bio fuels. The transformation to electric vehicles will happen segment by segment, market by market and region by region. The shift to electric vehicles and machines will be quick once customers’ total cost of ownership is outweighed by the opportunities of providing fossil-free transportation and prerequisites such as charging infrastructure is in place. The Volvo Group has deep customer knowledge and application expertise within many segments— a decisive factor in managing this shift.

Ambition of 100% fossil fuel free Volvo Group vehicles from 2040

This is the road map of how we see the landscape of tail-pipe emissions, i.e. what is being emitted from different vehicles or equipment.

In order to deliver on our commitment to the Paris Agreement, the running fleet delivered by the Volvo Group needs to be 100% fossil free by 2050. For that reason, our ambition is that 100% of our products are fossil fuel free enabled from 2040, since our products run in different types of production systems lasting for approximately ten years.

As illustrated there will a gradual shift into electric, both battery and fuel cell electric. The share of the Internal Combustion Engine will decrease over time and we do not yet forecast neither the share of ICE nor fuel cell electric. We will also see a transition towards renewable fuels like biogas or hydrogen.

The road map for electrification

Battery-electric vehicles are a good solution for city distribution, city buses, regional haulage and similar applications. For use cases with heavier loads or longer distances, hydrogen fuel cells will be an important technology. The two technologies complement each other and both will be needed in order for us to build the sustainable transport system of tomorrow.

Volvo Group's fast-paced introduction of electrification

This is our plan for electrification on the truck and bus side. A massive rollout that has already started. On the city buses side we have more than ten years of experience from hybrid propulsion, building into battery electric.

We are already in series production when it comes to medium duty, serving important segments like distribution and waste and recycling and urban construction.

The continuous rollout include container haulage, heavy construction, regional haul and eventually heavy-duty long haul, where we foresee a combination of battery and fuel cell electric vehicles. Moving forward, we are also reinforcing our capabilities and our offerings when it comes to energy services.

This is the introduction plan when it comes to the electrification of construction equipment. The production of the first two electric models has started for selected markets in Europe and further countries will follow from 2021 onwards.

A systemic view on alternative fuels

There is more to going fossil free than the electrification of vehicles and machines. There needs to be cooperation between different players to enable a fossil free transportation and infrastructure industry. The stakeholders that influence the choice of energy sources are policy makers, the energy, transport and vehicle industries as well as transport buyers and consumers. Volvo Group is continuously working together with different players that together shape the prerequisites for fossil free alternatives. Volvo Group aims to accelerate electrification with the creation of a new business area— Volvo Energy.

Fuel for the future

The Volvo Group will develop, produce and commercialize fuel cell systems. A major step towards climate-neutral and sustainable transport by 2050. 

Watch an explainer film on hydrogen with CTO Lars Stenqvist

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