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Nissan Diesel and Volvo Jointly to Develop Medium-Duty Trucks and to Study Hybrid Systems and Alternative Fuels

Nissan Diesel and AB Volvo will jointly develop medium-duty trucks for worldwide sales. The joint effort expects to combine the Japanese truckmaker’s strength in smaller trucks with the Swedish expertise in manufacturing heavy-duty models.

The companies will also conduct a joint study on advanced technologies such as hybrid engines, alternative fuels and emissions treatments. The two companies propose to co-develop engines and electronic systems, and collaborate in Asian production.

Earlier this year, the Volvo Group unveiled a prototype hybrid system for heavy-duty vehicles (buses and trucks) which promises fuel savings of up to 35%, depending upon usage. The company is targeting series production of the hybrid vehicles by 2009. (Earlier post.)

Both Nissan Diesel and Volvo have developed compression-ignition engine trucks fueled by dimethyl ether (DME). Each also has well-developed SCR systems for emissions reduction. (Earlier post.)

Nissan Diesel also intends to introduce Volvo’s modular concept for increased efficiency in development.

The announcement came during the presentation in Tokyo today of Nissan Diesel’s six-month results. Since the Volvo Group increased its ownership in Nissan Diesel to 19% at the end of September this year work to identify coordination possibilities has been intensified. AT the same time, Volvo acquired all 57.5 million preference shares in Nissan Diesel. The preference shares will be converted in installments and already on April 1, 2008, Volvo’s ownership interest in Nissan Diesel will amount to 41.9%. After full conversion in 2014, Volvo’s total ownership of votes and capital will amount to 46.5%.

The two companies estimate that within five years, the coordination gains between the Volvo Group and Nissan Diesel will total about €200 million annually (US$256 million). More than half of the expected total coordination benefits will occur within Nissan Diesel and the remainder within the Volvo Group.



Alternative Fuel Technology

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Cheryl Ho

There are developments in DME in China today:
China is already most advanced in commercial use of DME as a mixture with LPG. China is mainly interested in DME production from their own coal resources as national policy. South Korea is also interested in DME. As KOGAS is predominant in handling gas in South Korea , MOU for market study in South Korea has been signed between TOTAL and KOGAS quite recently. Their interest of DME is for LPG market as well as fuel for diesel trucks.

If you would like to know more on the latest DME developments, join us at upcoming North Asia DME / Methanol conference in Beijing, 27-28 June 2007, St Regis Hotel. The conference covers key areas which include:

DME productivity can be much higher especially if
country energy policies makes an effort comparable to
that invested in increasing supply.
National Development Reform Commission NDRC
Ministry of Energy for Mongolia

Production of DME/ Methanol through biomass
gasification could potentially be commercialized
Shandong University completed Pilot plant in Jinan and
will be sharing their experience.

Advances in conversion technologies are readily
available and offer exciting potential of DME as a
chemical feedstock
By: Kogas, Lurgi and Haldor Topsoe

Available project finance supports the investments
that DME/ Methanol can play a large energy supply role
By: International Finance Corporation

For more information:

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