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Clean Air Power, a developer of dual-fuel combustion technology that enable engines to operate on both diesel and natural gas, has inked a deal to supply Volvo Bus Corporation with its dual-fuel systems. Volvo will outfit 11 of its conventional buses with Clean Air Power's dual-fuel system and aims to have these coaches servicing routes in Sweden by summer. Once in action, the 11 vehicles will become Volvo's first batch of buses that can operate on both biogas and diesel.

Volvo has announced plans to launch a new hybrid bus for Europe at the IAA Bus and Truck Show in Hanover, Germany this September. No stranger to building big hybrids, Volvo had been waiting to have a go at a bus until it was more "commercially viable." Now, with many parts based on standard products, the company believes it is approaching a "generational shift" and will be able to save customers up to 30 percent of their fuel cost which would allow them to recover the extra bump in the price tag