Citing a slowdown in the pace of the North American alternative fuel market, Volvo has modified its plans for LNG and DME projects.

Development of natural gas infrastructure to support long-haul trucking has been modest over the last year and Volvo has decided to put a hold on plans to launch its own compression ignition liquefied natural gas engine for North America.

The company’s needs are being met with the current natural gas lineup, says Volvo. Volvo will continue to field test its DME powered vehicles, but the company has now decided not to set a date for commercialization as it monitors market and stakeholder interest in the fuel.

Volvo is currently working in a partnership with Oberon Fuels and Martin Energy Services to test DME as a viable, sustainable alternative to diesel fuel in heavy duty applications. 

In light of the announcement, Oberon confirmed that they are continuing to work with Volvo as they develop DME trucks together.

"We believe the simplicity of a DME fuel solution offers a significant benefit to fleet operators when compared to more complex solutions, such as LNG," said Elliot Hicks, cofounder of Oberon fuels. "Volvo's announcement is in line with where we see the alternative fuel market heading."