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.

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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.