Volvo Group to coordinate broad cooperation on sustainable biofuels

Volvo Group to coordinate broad cooperation on sustainable biofuels

The Volvo Group is the coordinator for the European project BioDME, which is
starting its work today. BioDME is a unique cooperative project involving the
automotive industry as well as fuel producers and distributors regarding the
fuel DME. The project will demonstrate the entire technology chain, from biomass
to trucks powered by DME fuel, including fuel distribution and filling stations.



The project partners represent all industrial sectors necessary to introduce a
new fuel. In addition to Volvo also Chemrec, Delphi, ETC, Haldor Topsøe and oil
companies Preem and Total are partners in the project. Chemrec and Haldor Topsøe
will construct the world's first plant for producing DME from biosource. Preem
will implement the DME distribution and build filling stations. Volvo will
demonstrate DME technology for heavy vehicles in a field test. ETC will evaluate
performance characteristics in the pilot plant, Delphi delivers fuel injection
equipment for the truck engines and Total will work on fuel and lube oil
specifications. 

“Already one year ago, Volvo presented seven trucks that could all be operated
carbon-dioxide neutral. The BioDME project is an example of what the next step
could look like and illustrates the possibilities of producing renewable fuel on
a major scale”, says Volvo Group CEO Leif Johansson.

The project is co-financed by the partners of the consortium, EU's Seventh
Framework Program (FP7) and the Swedish Energy Agency. 

Dimethyl ether, DME, has potential to become a highly competitive renewable
alternative to today's fossil fuels. DME from biosource is characterized by high
energy efficiency and minimal climate impact. DME vehicles have very low exhaust
emissions, due among other factors to soot-free combustion. DME is a non-toxic
chemical that is already used today as propellant gas in spray cans. 

Visit Volvo Group's project webpage:
http://www.volvo.com/group/global/en-gb/volvo+group/ourvalues/environment/renewa
ble_fuels/biodme/

Follow the BioDME project on http://www.biodme.eu
For information about renewable fuels:
http://www.volvo.com/group/global/en-gb/volvo+group/ourvalues/environment/renewa
ble_fuels/

Read more about CO2-neutral production:
http://www.volvo.com/trucks/global/en-gb/aboutus/environmental_care/CO2-neutral_
production/

Visit AB Volvos image gallery:
http://www.volvo.com/group/global/en-gb/newsmedia/imagegallery/

September 9, 2008

For reporters who want more information, please contact Mårten Wikforss, +46 31
66 11 27 or +46 705 59 11 49 

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AB Volvo (publ) may be required to disclose the information provided herein
pursuant to the Securities Markets Act. The information was submitted for
publication at 08.00 a.m. September 9, 2008.


The Volvo Group is one of the world's leading manufacturers of trucks, buses and
construction equipment, drive systems for marine and industrial applications,
aerospace components and services. The Group also provides complete solutions
for financing and service. The Volvo Group, which employs about 100,000 people,
has production facilities in 19 countries and sells their products in more than
180 markets. Annual sales of the Volvo Group amount to about SEK 285 billion.
The Volvo Group is a publicly-held company headquartered in Göteborg, Sweden.
Volvo shares are listed on OMX Nordic Exchange Stockholm.