Volvo outlines decarbonisation roadmap

Diesel engines will continue to power trucks here in Australia for a long time to come, but the transition to sustainable transport is accelerating – that was a key takeaway from Volvo Group Australia's recent biennial Media Day, held on Tuesday, February 23.

Hosted at VGA headquarters in Wacol, Brisbane, and online, transport media heard from VGA President and CEO, Martin Merrick, along with brand chiefs, and product and strategy specialists, as they outlined Volvo, Mack and UD's performance in 2020 and gave an insight into how the group is tackling the 'decarbonisation' of the transport industry.

"The messaging on Volvo Group's future is very clear," said Mr Merrick. "We are on a journey towards fossil-free transport solutions by 2040, and our journey has started in Australia.

"That said, the internal combustion engine will be with us here in Australia for a very long time to come. We will continue to invest and innovate so that this engine will become cleaner and more efficient."

While that sentiment may reassure Australia's transport operators, which rely on diesel-powered trucks to freight goods over Australia's vast distances and across cities still largely devoid of charging infrastructure, the electrification of transport is well underway.

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Volvo Trucks says it will commence production of a complete heavy-duty range of electric trucks from 2022, spanning FE, FL, FM, FMX and FH models, and will open its order books in Europe this year. And, closer to home, Volvo Group Australia has just embarked on a six-month trial of the first two electric Volvo FL models to reach our shores, which have entered service with Linfox in Melbourne.

The two trucks, both 4x2 models with a 16-tonne GVM, are powered by 600V, 200kWh Akasol batteries, with drive sent to the rear axle via a proprietary I-Shift two-speed transmission.

Volvo Group Australia will analyse the performance of the two trucks in minute detail over the coming months, examining everything from route suitability to charging methods, battery degradation and more, also utilising 'connected tools' to help determine the trucks' needs for optimal performance.

However, according to Gary Bone, Vice President of Volvo Trucks Australia, the trucks themselves are actually only a small part of the overall proposition, when it comes to electromobility.

"Our primary task is to ease the transition to electrified vehicles by offering holistic solutions that include route-appropriate, correctly specified vehicles, and making sure we have the most effective charging infrastructure, financing and services to go along with these amazing new products," he said.

Paul Illmer, VGA Vice President Sales, Strategy and Support, underlined that electric trucks were appropriate in some, but by no means not all, applications.

"Electromobility slots into some segments quite perfectly, and into some it makes no sense," he said.

"What we know at this stage is that electric vehicles don't like hills very much, and they don't like sitting on constant cruise speeds. So electric vehicles are going to make great sense in FMCG [fast moving consumer goods] urban deliveries."

At a global level, Volvo Trucks has committed to fossil-free transport by 2040, and to becoming a carbon-neutral company by 2050. The shift to electromobility is a big part of that push, and one that will encompass all parts of the group's wider business – not just buses, where the transition began from 2015, and now trucks, but also construction equipment, and marine and industrial engines.

The company is exploring not only battery-electric vehicles (BEVs) but also hydrogen fuel cell vehicles (FCEVs), through its joint venture with Daimler.

Biofuels such as biodiesel are also on the table as is LNG (liquefied natural gas), as interim steps to help reduce harmful emissions while BEV and FCEV charging networks roll out.

Mr Illmer said the move to electric vehicles was actively reshaping the company and its value proposition.

"The truck is just one part of it, but a circular support network in how we bring these trucks to market is just as important," he said.

"We're building competence and ability in different areas of the business we never had before."

Mr Illmer said VGA was currently working with energy providers and site auditors to ensure charging facilities were up to speed, analysing the pros and cons of various charging strategies, even using virtual reality goggles to roll out training in these new products across the wider Volvo network.

Even Volvo Financial Services is evolving to meet the changing landscape, examining a variety of different models that could apply to electric vehicles – leasing arrangements, pay per use, and so on.

"What you could say is that electromobility is for us a catalyst to transform other areas of the business," he said.

As for when we'll see electric Volvo trucks in Australian showrooms, Illmer says the answer is less clear.

"The only answer I can give for this, is when it makes sense – in terms of when we fully commit to delivering exactly the same support and the same promise that we give customers today for diesel trucks," he said.

"So we don't want to rush into technology for technology's sake. It needs to be done in a way that retains the brand's promise and when we know that it can be done safely – safety and uptime will be key here."