STOCKHOLM, Sweden — The Swedish Energy Agency has granted AB Volvo over $12 million Euros in support for field testing the third-generation DME technology for heavy vehicles.

The field tests with the 14 trucks is part of a project comprising demonstration of the entire technology chain, from biomass to fuel in the trucks and also includes distribution and tanking stations for DME. The first trucks are scheduled to be placed in traffic at the end of 2009.

DME is characterized by high energy efficiency and very low exhaust emissions, due among other factors to soot-free combustion. It is handled as a liquid in pressure vessels, at low pressure, and is produced through gasification of biomass or fossil raw materials. The gas that is formed is then catalyzed to produce DME.

In addition to AB Volvo, Chemrec, Delphi, ETC, Haldor Topsoe, Preem and Total are participating in the project as partners. Chemrec, ETC and

Volvo’s own studies have shown that DME has potential to become a highly competitive renewable alternative to today’s fossil fuels.