Europe’s electric vehicle (EV) industry is navigating mixed signals, with ambitious goals clashing against slower-than-expected adoption and infrastructure challenges.
This evolving landscape has prompted automakers to explore alternative solutions, and Volvo is leading the charge with a renewed focus on combustion engines adapted for hydrogen.
The Swedish company is making its largest-ever investment in this area, aiming to develop engines that run on hydrogen and various biofuels, according to Boosted.
Hydrogen combustion is now a core part of Volvo’s strategy, according to Lars Stenqvist, the company’s Chief Technology Officer.
Speaking to Swedish business outlet SvD Näringsliv, he emphasized the potential of hydrogen for future solutions.
“We aim to use hydrogen in combustion engines,” Stenqvist explained, drawing comparisons to trucks already running on natural or biogas.
Challenges with Electric Trucks
Despite heavy investments in electric trucks, adoption has been slower than anticipated. In 2024, electric models accounted for just 2% of Volvo’s truck sales, and the company has seen a dip in orders for these vehicles. This decline has even led to downsizing at its factory in Gothenburg.
However, Volvo isn’t stepping back from innovation. The company is pivoting to ensure its trucks can run on a variety of alternative fuels, including biogas, e-fuels, and hydrogen.
Volvo’s strategy involves focusing on three main technologies: battery-electric trucks, hydrogen fuel cell trucks, and combustion engines adapted for alternative fuels.
This approach reflects the diverse needs of different markets, where emissions standards can vary widely.
For instance, the U.S. may see relaxed emissions rules under potential regulatory changes, while Europe could tighten its environmental requirements.
Such uncertainties make it crucial for Volvo to maintain flexibility across its product lines.
