Daimler And Volvo Will Jointly Develop Hydrogen-Powered Powerplants
Truck manufacturers German Daimler Truck and Swedish Volvo Group are going to jointly develop and implement power plants based on hydrogen fuel cells. The companies agreed to create a joint venture to develop, mass-produce, and market fuel cells that will be used to generate power for electric engines of heavy-duty vehicles and other industries. The joint venture will be based on the Daimler-owned Mercedes-Benz Fuel Cell company, which has experience in developing fuel cells and hydrogen storage systems for vehicles.
Daimler will consolidate all current activities in the field of fuel cells in the joint venture, and Volvo Group will acquire 50% in the joint venture for about 600 million euros, the report said. The company signed a preliminary non-binding agreement, a contract of the joint venture is expected in the third quarter, the transaction will be closed before the end of 2020, following approval of antitrust authorities, said the company. The joint venture will be located in Nabern (Germany), where the headquarters of Mercedes-Benz Fuel Cell is now located, and it will include production in Germany and Canada.
The joint venture will be an independent and Autonomous organization, and Daimler Truck and Volvo Group will continue to be competitors in all other business areas, the companies said. Joining forces will reduce the development costs for both companies and accelerate the introduction of fuel cell systems for vehicles that operate in difficult conditions and travel long distances.
Companies are looking to bring mass-produced fuel-cell trucks to market in the second half of this decade. This is how producers are going to achieve the goals of the European green agreement, according to which by 2030, greenhouse gas emissions should be reduced by 50-55% to the level of 1990, and by 2050, the region should stop influencing the climate.