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JUNE 27, 2005
Volvo AB's Low-Emissions Drive As Europe sets stricter emissions standards, the Swedish truck and bus maker is a leader in producing clean-running vehicles
About a third of Gothenburg's 300 buses now run on alternative fuel, and that number will have to grow if the city is to meet new emissions standards set for 2008. "Given our requirements, we'll probably be using more gas," predicts Anders Roth, environment manager for the Gothenburg Traffic & Public Transport Authority. While it's no surprise that low-emission Volvo buses and trucks sell well in environmentally conscious Sweden, Volvo has found customers for its clean-running vehicles worldwide, even in countries that haven't ratified the Kyoto Protocol on global warming. "Our customers are much more aware of this," says Lars Martensson, environmental manager for Volvo Trucks. "They want to stay ahead of legislation." PUMP SHORTAGE. By improving the fuel efficiency of its ordinary diesel truck engines, Volvo has reduced carbon dioxide emissions by 20% over the past 10 years. Martensson says the division is on target to reach a 25% reduction by 2008. To get there, Volvo is hoping to raise the number of biodiesel truck sales from the current 5% of total truck sales. Biodiesel, which is made from vegetable oils, emits less carbon dioxide than regular diesel fuel. One drawback for vehicles running on such alternative fuels is a dearth of fueling stations. But Martensson see that as a smaller problem for trucks and buses. "Many of our customers have their own fueling stations. The problem isn't as big as many believe," he says. Still, Volvo has yet to launch a truck engine that runs on 100% recyclable methane-based biogas or liquid natural gas. Trucks with such engines would cost at least 10% more, and "that's still too much," says Martensson. "But the day is coming." Alternative fuels have made greater inroads with public buses, since in many cases taxpayers' money subsidizes costs, and bus companies can set up their own fueling stations. Besides natural gas, Volvo is developing an engine that can run on fuel produced from so-called biomass -- usually debris from pulp and paper manufacture -- which can be mounted in Volvo's standard truck and bus models. Peter Danielsson, environmental manager for Volvo Buses, says the company hopes to begin commercially marketing buses with the engines by 2010. NEW DESIGNS. Trials are set to start later this year in the Swedish town of Växjö, which is aiming to cut greenhouse gas emissions to half of 1993 levels by 2010. The town also wants to eliminate the use of fossil fuels for all municipal operations -- one reason biomass buses are attractive. Biofuel isn't just a choice that consumers sensitive to the environment can make, Danielsson notes. That's because the European Union will require that about 6% of all vehicle fuel come from biogas by 2010, and that percentage is likely to increase in future years. Volvo's biofuel already meets the EU's 2008-09 standards for reduced particulates. Besides alternative fuels, changes in bus design and improved engine efficiency are helping to cut emissions. Volvo spends about 200 million euros ($240 million) a year on research and development to improve engine efficiency in its buses and trucks. "If you want to stay in business, you have to have more efficient fuel, and that means more efficient engines," says Danielsson. LIFE IN THE FAST LANE. For bus operators, fuel is the second-greatest cost after driver salaries. One simple environmental fix is to make buses longer, so that more passengers can be packed in, ultimately cutting down the number of buses on the roads and the level of emissions. The longer buses are used in a system known as Bus Rapid Transit (BRT), in which the bigger, cleaner, more fuel-efficient buses stop less often, move in dedicated bus lanes, and load at special bus stops designed like metro stations so that more people can board at once. Ticketing is in advance of boarding to further speed things up. Latin American countries, especially, see the system as a good way to cut emissions and improve the efficiency of public transportation. Volvo has 90% of the BRT market in Latin America. In January, Volvo won an order from officials in heavily polluted Santiago, Chile, for 1,779 BRT buses. The aim is to get thousands of small, dirty minibuses off Santiago's streets and replace them with the Volvo models, which in addition to being extra long, have engines that meet the EU's new, tough emissions standards. While the larger buses cost about 50% more up-front than conventional models, operating costs are lower because the system needs fewer drivers. STAGGERED TIMETABLE. But development of low-emission engines is being held back by a lack of worldwide emissions standards. Each of Volvo's more than 30 truck engine models has to meet the differing standards for the U.S. and its 50 states, the EU, and Japan. In addition, tougher legislation is being phased in differently in those markets, making it hard to coordinate production changes. "This is very costly, and it's not very effective for the environment," says Martensson. "If we could take all the money we're investing to meet different standards and put it into environmental improvement, it would be much more effective." But that day will be a long time coming.  By Ariane Sains in Stockholm
BW MALL
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