Nuclear energy

image text: Our opinion


General questions about what the Volvo Group think about nuclear energy

Is Volvo against nuclear energy?

No, Volvo is not opposed to nuclear energy. However, taking into account the climate issue, our view is that nuclear energy is needed in the energy system – perhaps even more nuclear power than today.


Then why in a contract with Vattenfall have you demanded nuclear-free electricity?

Our agreement with Vattenfall applies specifically to Sweden.

In our contract with Vattenfall, we have agreed on receiving renewable energy – nuclear energy is not renewable. The reason we made this demand is to help bring other alternative energy sources to the market. Accordingly, the aim of the agreement is not to eliminate nuclear energy but to choose alternatives in an effort to increase the availability of renewable energy on the market.


But why then do you want more renewable energy on the market? Do you want this because you are actually opposed to nuclear power?

No, we want more renewable energy because it creates more alternatives on the energy market – and we want an energy market characterized by diversity – and that it is good from a climate and an environmental perspective.


But, will you still then purchase nuclear-based electricity?

Absolutely, and we already do so outside Sweden, where we purchase, and will continue to purchase, nuclear-based electricity.

The contract with Vattenfall applies only to Sweden and the reason for this is that we have the possibility to contribute to bringing more alternatives to the market.


But why do you want to do so?

Volvo wants an energy market characterized by diversity since from an energy supply viewpoint it is favorable if we have many different energy alternatives from which to select.

From an environmental and climate viewpoint, it is also smart to bring more renewable energy to the market. This is what we are doing in our contract with Vattenfall.

 


Then what is your view of nuclear power?

Short term, and probably also long term depending on technology development, we believe that as a result of the climate issue, we will need nuclear power, perhaps even more nuclear power.

We would like to see that a parliamentary commission is appointed with the mission of investigating what the conditions are for continued use of nuclear power – particularly taking into account the fourth-generation.

We think it would be good, if we dared to taken a second look at nuclear power and gather new scientific facts – in Sweden, we haven’t taken a new look at nuclear power for nearly 30 years.


What is your view of nuclear power from an environmental perspective?

From a climate perspective, nuclear energy is favorable. It is CO2-free and does not contribute to the climate effect.

The problem with today’s nuclear energy is the spent waste problem – finding a safe and suitable method to take care of the waste. But the technology has advanced and it is possible that the waste issue will not be any major problem and in such a case nuclear energy is an attractive alternative.


Does Volvo want to initiate a build-out of nuclear energy?

We are not prepared to say that we should expand nuclear energy.

What we are prepared to say, however, is that we believe that it would be favorable if we dared to again take a look and seriously investigate the conditions for the future of nuclear energy against the background of the technology development that has occurred since the referendum in 1980. There has not been any new thinking about nuclear energy in Sweden since then.


How much of this is about the environment and how much about the economy? You can’t be green at any price?

With regard to CO2-neutral plants, our starting point was that we should investigate the possibilities for environmental reasons to make them CO2-neutral, that is, that we should obtain energy in such a manner that they would not provide any net surplus of fossil carbon dioxide to the atmosphere.

Initially, we were prepared to pay a slight premium, but we soon discovered that in these projects we were able to ally ourselves with local energy suppliers and this provided us an opportunity to sign very long-term energy contracts.

Since we access that energy prices will rise, this means that these ventures will be favorable also from an economical perspective.

Initially, our CO2-neutral plants resulted in higher costs, but in a slightly longer term perspective, we expect that they will also pay off strictly economically.


October 12, 2007

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