Climate change is one of the most important environmental issues of our time, and it represents the greatest challenge for the automotive industry. There is increasing recognition of the need to replace the use of fossil fuels, such as oil, coal and natural gas, that contribute to the increasing levels of greenhouse gases in the atmosphere. Other strong drivers for reducing our dependence on fossil fuels are security of supply and economic issues.
At present, the road transport sector accounts for about 15% of total fossil fuel consumption. More than 97% of energy used in the transport sector comes from crude oil. Political and industrial initiatives are being taken to diversify the energy supply towards non-crude oil sources, particularly natural gas and renewable resources, but changing the fuel process pattern from crude oil-based fuels to other energy sources will be a long process. So we must look to a plethora of different solutions to meet our climate change goals.
Transport users are themselves seriously reviewing how they can reduce their dependency on oil, driven by the uncertainty surrounding the physical and political availability of oil and by climate change issues.
Volvo is striving to meet these demands with its focus on producing vehicles that create less pollution and thus help curb the greenhouse effect. One effective solution for reducing emissions of the greenhouse gases produced by vehicles is the introduction of hybrid technology. Recent research efforts have resulted in the development of a hybrid solution not only for heavy vehicles but also for trucks, city buses, garbage trucks, farm vehicles and heavy machinery.
The hybrid engine uses battery power when the vehicle is accelerating, with the diesel part turning on only when the truck is at optimal speed. Hybrid technology has been used in cars for about 10 years now, and is designed to reduce not just fuel consumption but carbon dioxide emissions and noise pollution as well. In fact, the new technology offers fuel savings of up to 35% and its maximum fuel-saving effects are on routes with frequent stops and starts, like city bus traffic, city distribution, refuse collection and construction work. Fuel bills for city buses could be cut by a third, which would allow operators to recoup within two years the higher costs of buying hybrid engines. These new vehicles could be on the road by 2009.
The hybrid is a long-term and highly interesting solution for efficient and environmentally-adapted transport activities. However, even with the successful introduction of hybrids, we still see a predominance in the use of diesel fuel for heavy vehicles in the foreseeable future. Continuous improvements in diesel fuel quality worldwide, engine developments and better engine maintenance are therefore still crucially important if we are to continue reducing emissions. Hazardous emissions from diesel fuel have already been reduced significantly; over the past 20 years nitrogen oxide and particulate matter emissions have been reduced by 90% and 80% respectively, along with a 20% reduction in CO2 emissions. At EU level, there is a desire to further tighten the limits of these emissions. Apart from the usual climate change anxieties, there are also concerns relating to human exposure to small size particulate matter in ambient air and its effect on public health.
Growing demand for crude oil, together with possible limitations in supply leading to price increases, means that these conventional diesel fuels will become less viable. This will trigger a need for large-scale investments in production of fuels from other energy sources. Hydrogen-based fuel alternatives are still a number of years away, so we need to work with existing alternatives. Of the alternative fuels currently being considered, Volvo’s research shows that DME, (dimethyl ether), a bio-mass derived fuel, has major potential to become a highly competitive alternative to today’s fossil fuels. It has the highest energy efficiency and is among the lowest in emissions of CO2 and particulates. But as with most alternative fuels, its success is determined by a reliable supply of the fuel and the appropriate infrastructure. The diesel engine in the Volvo hybrid solution can also be operated using such biofuels, which holds out the promise of transport without carbon dioxide emissions. This in turn paves the way for interesting developments toward long-term sustainable transport solutions.
Many clean technologies already exist, but what we are missing is access to the market, security of supply and adequate infrastructure. We are therefore in a chicken-and-egg situation. Governments need to play a leadership role in the development and introduction of clean technologies through further investment and fiscal incentives. The European Commission’s recent proposal, which promotes the introduction of clean vehicles in public procurement contracts, is a good example of the kind of initiatives that are needed to encourage stage, local and regional buy-in, if defined properly and technology-neutral in its approach.
To keep up the momentum in the race against climate change, we need more focus and investment on applied research efforts that support continuous technological development. Transforming an energy system comprising vehicles, fuel and infrastructure takes a long time and requires massive resources. All relevant stakeholders, vehicle manufacturers, fuel producers, politicians and researchers need to step up collaborative efforts and guarantee dedicated investment and a vision of the possible routes and the action to be taken. If this degree of commitment could be taken to a global level we would see substantial value added. Global emission standards mean increased and focused R&D spending, which speeds up and reduces the costs of developing new technologies and fuels to the best of the society and the industry.
Stefan Lorentzson
Head of Volvo Group Representation to the EU
