On the road to electrification of construction machinery, there is an age-old but unavoidable question: a single electric excavator or loader does indeed have zero emissions, but where does the electricity for the entire construction site come from? How to install charging stations? Can the power grid withstand it? Without solving these "backend" problems, it will be difficult for electric devices, no matter how many, to truly take effect.
Recently, Volvo Construction Equipment and Hitachi Energy signed a memorandum of understanding, preparing to work together to piece together these scattered pieces of puzzle - from power supply and charging to energy management, and then to operational integration as an integrated system solution, directly responding to the industry's growing demand for sustainable development and production efficiency, and promoting the industry's shift from a single technology to integrated, plug and play solutions.
Even the best electric equipment needs to solve the problem of 'where does electricity come from'
If you have been to construction sites in recent years, you are likely to have seen the presence of electric excavators or electric loaders. Volvo Construction Equipment has made many moves in electrification in recent years, and its product line is gradually expanding. But a practical problem is that "zero emissions" of equipment does not equal "zero emissions" of construction sites.
How can we ensure that several or even dozens of electric devices can be charged in a timely manner while running on the construction site? Is the charging power sufficient? Can the power infrastructure on the construction site keep up? Will the electricity load during peak construction period cause tripping? These issues are far more complex than replacing an electric device.
Hitachi Energy's strength lies precisely here. As a leading player in the global electrification field, Hitachi Energy has accumulated a considerable foundation in power systems, energy management, and system integration. By combining the electric capabilities of Volvo Construction Equipment and Hitachi Energy, things become interesting - one understands equipment and the other understands electricity, forming a complementary relationship.
Signing is not just an agreement, but also a 'packaging mindset'
The agreement signed by both parties this time is a memorandum of understanding, not just a piece of paper. According to the agreement, the two companies will jointly evaluate technical and commercial solutions for zero emission construction and manufacturing operations on a non exclusive basis. Translated into plain language, it means: Let's work together to find solutions to the electricity pain points you encounter on the construction site.
Specifically, the cooperation will cover four levels: power supply, charging solutions, energy management, and operational integration. That is to say, it's not Volvo selling a few electric excavators, Hitachi Energy selling a few charging stations, each doing their own thing; But instead, we sit down together and design a complete plan from power supply to equipment and operation scheduling based on the electricity demand of the entire construction site.
Niklas Persson, CEO of Hitachi Energy Grid Integration Business, and Melker Jernberg, President of Volvo Construction Equipment
Melker Jernberg, President of Volvo Construction Equipment, has high expectations for this collaboration: "By integrating complementary professional capabilities and providing complete and integrated solutions, we give our customers the confidence, assurance, and peace of mind they need to operate with zero emissions at ease." Niklas Persson, CEO of Nichira Energy Grid Integration Business, pointed out a key change: "With the increasing electrification and complexity of construction, the core of success lies in system level integration, efficient execution, and working with partners like Volvo Construction Equipment to scale up zero emission construction
Focus on commercial implementation in the early stage and leave enough room for technological imagination in the later stage
The approach taken in this collaboration is also quite pragmatic. The agreement clearly states that the initial focus will be on commercial and market-oriented aspects, emphasizing the use of a "plug and play" approach to help customers simplify their transition to zero emission construction sites. To put it simply, first make sure the customer can use it, afford it, and use it well, without resorting to fancy designs.
Of course, cooperation did not seal off the ceiling. The agreement also reserves space for deeper technological cooperation in the future, such as advanced capabilities such as intelligent connected devices, digital integration, and value-added services, all of which are on the exploration list in the future.
The accumulation of both companies in their respective fields is also convincing enough. Volvo Construction Equipment has always been at the forefront of the industry in electrification and digitization, while Hitachi Energy is globally recognized as a technology expert in power systems, energy management, and system integration. This collaboration can be regarded as a system level integration attempt of "hardware+energy".
Industry Observation
The implementation of zero emission construction sites is essentially a systemic issue, not an equipment problem. The technical threshold for a single electric device has been significantly reduced, and the real challenge lies in how to make the energy system of the entire construction site operate efficiently - from grid connection to on-site distribution, from charging scheduling to peak shaving and valley filling, every link cannot fall off the chain.
The cooperation between Volvo Construction Equipment and Hitachi Energy this time sends a clear signal that the competitive dimension of the construction machinery industry is changing. Who used to compare excavators with stronger power and lower fuel consumption; What we are comparing now is who can provide customers with a truly operational and feasible zero emission construction ecosystem. Whoever builds this' soft hard integrated 'system first will get the ticket to the next stage.
Of course, this is just the first step. The memorandum of understanding has been signed, and every step of the implementation of the plan, project pilot, and customer verification is not easy. But the direction is right - from selling equipment to building an ecosystem, this is the path that the construction machinery industry must take.
