Volvo Gains Extension on Drivetrain, Hybrid Research Grant

The U.S. Department of Energy and the government of Sweden extended a cooperative agreement with the Volvo Group on development of alternative drivelines, Volvo said Monday.

The extended agreement between DOE and the Swedish Energy Agency — first set in June 2007 — will provide a three-year, $18 million grant to the Volvo Group for the development of hybrid technology and drivelines for alternative fuels, the company said.

The agreement is aimed at reducing heavy vehicles’ use of fossil fuels through research and development projects in the areas of energy efficiency, drivelines for alternative fuels and use of hybrids.

“The climate issue and increasing fuel prices make energy use and energy efficiency some of the most important societal issues of our time,” said Volvo Group Chief Executive Officer Leif Johansson.

“The transportation industry has a special responsibility and this research and development co-operation with the U.S. government is crucial in our efforts to develop [these] drivetrains and technology,” he said in a statement.