Volvo Penta has entered the electric utility market with a minority stake in US Utility Innovation Group. The move is focused on moving Volvo beyond its established markets in transportation and into new use cases for its electrification technologies, particularly in the areas of digitalisation within the grid, and developing microgrid technologies.

With the move, Volvo is also seeking new business opportunities for its energy storage technology in energy critical use cases such as hospitals and data centres. The company has also identified a new class of electrical “prosumers” who produce and consume energy in support of the electrical grid through renewables and other on-site energy sources.

According to Volvo, all types of use cases are able to optimise their energy usage by connecting energy sources with battery energy storage systems (BESS) to reduce reliance on the grid and build a more resilient energy ecosystem.

The investment underscores Volvo Penta’s ambition as an independent supplier, to scale net-zero projects together with its OEM customers at a higher pace while continuing to strengthen its portfolio of solutions.

“This move is another proof point on our journey to net zero and decarbonising beyond the transportation sector. We see great potential in our investment and our collaborative partnership with UIG. Together, we will be able to accelerate access and adoption of BESS-related solutions,” said Heléne Mellquist, President Volvo Penta.

“Establishing trust and fostering a strong partnership comes naturally, given the proven track record of the Volvo Group’s technology in emissions reductions, heavy-duty power solutions and after-market expertise,” said Sidney Hinton, Founder and CEO of UIG. “Volvo Penta’s electrification platform offers differentiated energy storage performance for electrical resiliency within microgrid solutions as we design and build the electric grid of the future. With this strategic investment, we aim to deploy industry-leading solutions and new technologies, enabling digitalisation, charging optimisation and microgrid operations.”