Scania's New Buses and Coaches Focus on Alternative Fuels

STOCKHOLM - June 20, 2006: "Even today, bus service can be provided cost-effectively with renewable fuel, with reliability as high as for diesel buses. The smoothest path to sustainable development is to invest in fuels that can be used with today's engine technology and distribution infrastructure. Ethanol is such a fuel," said Hasse Johansson, Scania's Head of Research and Development, as the company today began the broad launch of its new bus and coach range.

Today Scania began the launch of its new buses and coaches for journalists and customers from throughout Europe. The broadest range in the market, it includes urban, suburban and intercity buses as well as tourist coaches in numerous designs. The top model is the head-turning Scania Irizar PB tourist coach featuring the new 470 hp engine, which offers exceptional comfort, driver appeal and performance.

With its ethanol engines, for more than 15 years Scania has been meeting the ever-stronger demands from customers and passengers that bus services should operate on alternative fuels. Scania also offer engines that run on Rapeseed Methyl Ester (RME), biogas or natural gas.

"We have invested in ethanol because this renewable fuel can easily be produced locally. Production is increasing significantly worldwide, among other things because it is a good alternative fuel for cars.

"With today's robust technology, Scania's ethanol-powered buses have the same high reliability as diesel buses. We know this after more than 15 years of tough operation in Stockholm city traffic," Mr Johansson declares.

Scania's ethanol engines are based on robust, highly efficient diesel technology. They offer an attractive ethanol-powered option in heavy vehicles as well. The fuel is pure ethanol with an ignition improver additive. For decades, Scania has developed ethanol-powered vehicles on a large scale, mainly in collaboration with Storstockholms Lokaltrafik (SL), the Swedish capital's regional transport company.

Today all SL buses in central Stockholm run on alternative fuels. This has led to a sharp reduction in the environmental impact of public transport. The technology is thoroughly tested and, according to SL, does not complicate the operation of its growing fleet (approaching 600 ethanol buses).

Scania ethanol buses have also attracted heavy interest from other countries and are now being tested in various locations. As the only bus manufacturer in the BioEthanol for Sustainable Transport (BEST) project, which promotes large-scale use of ethanol as a vehicle fuel, Scania expects to deliver city buses for test operation in ten locations worldwide - not only in Europe but also in Asia and South America.

Scania considers ethanol the most interesting renewable fuel for future vehicle operation. Ethanol has a lower energy density than diesel or petrol, which means higher consumption, but liquid fuel is easier to distribute and handle than biogas or natural gas. Existing infrastructure can be used and no heavy on-board pressurised gas tanks are required.

Ethanol is usually produced from sugar cane or sugar beets, but the raw material may also be cereals or biomass, for example forest waste. Production is sharply increasing across the world. With simple adjustments, ethanol can be used in petrol-powered vehicles, i.e. vehicles with Otto engines.

With a gradually increased percentage of ethanol in petrol, we can achieve a smooth transition to alternative fuels in cars. Meanwhile heavier vehicles in cities and towns can run on Scania ethanol engines, fuelled by pure ethanol with ignition improver additive.

Scania is one of the world's leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines. A growing proportion of the company's operations consists of products and services in the financial and service sectors, assuring Scania customers of cost-effective transport solutions and maximum uptime. Employing 30,000 people, Scania operates in about 100 countries. Research and development activities are concentrated in Sweden, while production takes place in Europe and South America, with facilities for global interchange of both components and complete vehicles. In 2005, invoiced sales totalled SEK 63.3 billion and the net income amounted to SEK 4.7 billion. Bus chassis production takes place in Sweden and Brazil. Bodybuilding takes place in Poland and Russia.