Volvo CE & Hitachi Energy: Zero Emission Construction Sites

Volvo Construction Equipment and Hitachi Energy have signed a Memorandum of Understanding to establish a framework for deploying electric construction equipment. The agreement could address one of the construction industry's most pressing environmental challenges.

According to McKinsey, building operations alone account for over one-quarter of global CO₂ emissions. The construction industry ranks among the largest generators of greenhouse gas emissions worldwide.

Collaboration on zero-emission sites

The two companies will work on a non-exclusive basis to assess technical and commercial concepts for zero-emission construction and manufacturing operations. Their collaboration will examine system-level requirements for electric construction machines on site.

This includes power supply infrastructure, charging solutions, energy management and operational integration. The scope covers joint work on business models, go-to-market approaches and aftermarket support considerations.

Melker Jernberg, President of Volvo CE, says: "Strategic partnerships such as this with Hitachi Energy are key to accelerating the transition to zero-emission construction. By combining complementary expertise and delivering a complete, integrated solution, we are giving customers the confidence, security and peace of mind they need to adopt emission-free operations today."

The agreement focuses on system integration and site-level operational execution. Both companies say the collaboration aims to accelerate the transition to zero-emission construction sites.

Built environment emissions data

According to McKinsey, the built environment accounts for almost 40% of global energy-related CO₂ emissions. The sector produces about one-third of the world's waste.

Regulatory and permitting frameworks increasingly require projects to address emissions and environmental performance throughout the planning and approval process. Customer and investor demand for lower-emission construction operations has grown.

McKinsey reports that the value of the global green built environment approaches US$2tn. This could create opportunities to change the allocation and flow of building resources with circularity.

Decarbonisation remains one of the construction industry's most pressing challenges. The transition from diesel-powered to electric equipment could address emissions at the operational level.

System integration for electric equipment

Electrification, automation and efficient resource and asset planning offer pathways to reduce emissions. However, transitioning from individual electric machines to fully functioning zero-emission construction sites requires a coordinated ecosystem of solutions.

Effective system integration across equipment, power infrastructure and energy management systems is needed. Volvo CE says the collaboration represents a next step in providing customers with a solution to navigate this transition.

Niklas Persson, CEO of Grid Integration at Hitachi Energy, says: "Electrification is a game changer in the decarbonisation puzzle, particularly for hard-to-abate environments such as construction sites.

"As construction operations become more electric and more complex, success depends less on individual technologies and more on system-level integration, strong execution and close collaboration with partners like Volvo CE who share our ambition to enable zero-emission construction at scale."

The companies say the collaboration will combine complementary expertise to deliver integrated solutions. This could give customers the infrastructure and operational frameworks needed to adopt emission-free operations.