The Swedish Energy Agency has granted SEK 9.8 million (EUR 1 million) in financial support to AB Volvo for a project for the development of new hybrid technology for heavy vehicles. The project, which aims to achieve fuel savings of up to 30%, comprises development and testing of hybrid technology in two refuse collection trucks in Gothenburg and Stockholm. The project will be implemented in cooperation with two of Volvo's major refuse collection customers. The vehicles are scheduled to be placed in operation in the beginning of 2008. Evaluation and testing will be carried out in cooperation with the customers during a three-year period. During the entire project, Volvo will further develop and optimize the technology for future series production. Volvo will also install and test a new safety system for vehicles in city traffic on both trucks.