As a part of Volvo Group’s strategy to enhance electromobility initiatives, Volvo Penta has acquired Zero Emission Maritime solutions (ZEM) – a company with 12 years of market experience as a supplier of both marine battery systems and complete electric drivelines.
According to the company, this transaction has no significant impact on the Volvo Group’s earnings or financial position.
Volvo Penta recently announced that it was redirecting further resources into accelerating its product development to advance the group’s sustainability agenda. The objective is to reach net-zero emissions through fossil-free, renewable fuels, electric, and hybrid technology while providing efficient solutions to the marine industry.
Volvo Penta has a solid technology foundation to leverage. However, marine electromobility has a unique set of requirements and therefore, it acquired ZEM, which also has a strong track record in Norway, the most mature marine e-mobility market in the world.
Both companies have extensive knowledge, experience, and expertise. Volvo Penta will support ZEM’s growth through its established network, while ZEM’s experience will help Volvo Penta accelerate development projects. Together the companies will expand and expedite Volvo Penta’s range and capabilities in marine electromobility.
Heléne Mellquist, President, Volvo Penta, said, “With this acquisition, we are now able to offer driveline solutions for marine customers through ZEM and also contribute to the broader marine electromobility footprint through battery supply. It is a step forward in our transformation and will also allow Volvo Penta to capture new opportunities.”
Although ZEM will continue to grow its battery and complete driveline business, the two companies will create complete packages together over time.
The switch from diesel-based technology to electrification will be a key element in Volvo Group’s transformation, alongside other new technological advancements. The electrification journey will be augmented through strong collaboration with stakeholders – customers, business partners, and like-minded industry experts, Mellquist added.
Peter Granqvist, Chief Technology Officer, Volvo Penta, said there are particular considerations of utmost importance around the installation environment, safety, the use case itself, and the current lack of charging infrastructure. These are challenging issues that require innovative problem-solving and experience. In addition, marine regulations differ from those on-road.
Jan-Olaf Willums, Founder of ZEM, said the two companies are aligned on such core values as safety and environmental protection. Besides, both have the Scandinavian pioneering spirit. Volvo Penta’s name and market reach will help propel ZEM into new electromobility markets, supporting its growth.