€20.5m European aid for Renault diesel hybrids 03 October 2013

The European Commission has approved €20.5 million of state aid, via France, for Renault to develop diesel hybrid technology for vans, in partnership with Continental, Valeo and LMS International.

The research and development programme, dubbed HYDIVU, aims to deliver a hybrid engine designed for commercial vehicles, rather than an adaptation of passenger vehicle technology.

At the end of the project, Renault will equip its Trafic and Master van ranges with a new diesel-electric hybrid engine, which it says will deliver better diesel consumption and lower CO2 emissions.

This, says the Commission, addresses a genuine market failure. Of the total €20.5m, Renault receives €3.8m in grants and will repay the remainder, which is amounts to an advance for R&D.

"Almost 2 million commercial vehicles are sold each year in Europe. This project should result in a substantial reduction in their fuel consumption and CO2 emissions, thereby contributing to the EU's targets for innovation, the environment and energy security, without affecting competition," comments Joaquín Almunia, Commission vice-president for competition policy.

The Commission, he says, accepts that, traditionally, van technology has been derived from passenger vehicles. They share the same configuration, engines and transmission systems.

But here, adapted technologies are not a perfect fit for the operating constraints of commercial vehicles, he argues.

There is insufficient power to drive heavier and less aerodynamic vans, which have to carry heavy loads over long distances.

So, for the first time, this project will result in a hybrid engine specifically designed and optimised for vans.

Author
Brian Tinham

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