Cummins, dynaCERT, Volvo: The Race for the Cleanest Fleet

Cummins: Billion-Dollar Corporation Revamps Diesel

Cummins is taking a decisive step in the energy sector, having received its largest order to date for a battery energy storage system.

The system will be installed in a US data centre focused on artificial intelligence applications. Because AI computing processes cause abrupt, significant fluctuations in power demand, the system is designed to smooth peak loads and help stabilize the local power grid. The system uses liquid-cooled lithium iron phosphate cells and delivers a capacity of 5 MWh. With this offering, Cummins is meeting the growing needs of data centre operators, who increasingly have to contend with grid congestion and high electricity costs.

In its traditional engine business, the company is preparing for future environmental regulations. A new exhaust aftertreatment system called "Twin Module" was unveiled for upcoming commercial vehicle diesel engines, set to be introduced in 2027. The system is designed to meet stricter North American emissions standards. It is divided into two separate modules, giving truck manufacturers more design flexibility in vehicle construction.

The most important technical adaptation is an integrated electric heater. This ensures the catalytic converters quickly reach the necessary temperature, even during cold starts or at low loads, to reliably filter nitrogen oxides. For end customers, the new design does not change the existing cleaning intervals for the filter systems.

Analysts at Bernstein SocGen continue to rate the stock "Market Perform" and have set a price target of USD 700. Although Cummins reported revenue of USD 9.5 billion in the second quarter, exceeding expectations, its profitability fell short of forecasts: one-time expenses and higher compensation reduced profits. Management subsequently revised its margin expectations downward. However, strong demand for truck components and power generators led it to raise its full-year revenue forecast.

dynaCERT: Small Market Share, Huge Leverage

This vast fleet of internal combustion engines presents an opportunity for dynaCERT. The Canadian company does not need to develop new trucks; instead, it aims to retrofit existing diesel engines. This expands the addressable market beyond road transport. HydraGEN™ can also be used in diesel engines in mines, ports, construction equipment and stationary applications.

The technology generates hydrogen and oxygen on board as needed and feeds the gases into the combustion process. According to the company, fuel savings of up to 8% and CO₂ reductions of up to 9.6% are possible. This is crucial for fleet operators, because if HydraGEN™ measurably reduces fuel consumption during real-world continuous operation, it creates an immediate economic incentive in addition to the CO₂ reduction.

The key lies in scaling. dynaCERT does not need a large share of the global diesel market. Even low market penetration could translate to high unit volumes given the massive fleet of vehicles and machinery. The focus now is on turning successful tests into repeatable fleet orders.

The first signs are coming from Asia. Following a pilot installation, dynaCERT received its first production order from a Vietnamese logistics company. In addition, HydraGEN™ systems were installed on trucks and container handlers operated by a major port operator in Vietnam. At the same time, dynaCERT is showcasing its technology at the 24 Hours Le Mans truck race alongside NRS Racing, the Dakar Team and its French distribution partner IPMD.

Commercialization is increasingly taking centre stage. If the company succeeds in making the leap from individual projects to larger fleets, even modest market penetration could trigger significant revenue growth. The billion-dollar market is there; dynaCERT must now show that HydraGEN™ can scale within it.

Volvo: Electric Trucks Enter Everyday Use

Vehicle manufacturer Volvo is also driving its transformation in two areas: digital vehicle development in the passenger vehicle segment and zero-emission logistics in the commercial vehicle sector.

In the passenger vehicle division, Volvo Cars is now considered the primary industry partner for the new development platform "Horizon". This open-source project, initiated by Accenture and Google Cloud, focuses on the further development of the Android Automotive operating system. By using cloud-based tools and AI-supported processes, programmers no longer need to wait for physical hardware. Virtual test environments can now be set up in seconds, accelerating software testing by up to nine times. At the same time, development costs for infotainment systems can be reduced by up to 40%. For the company, this means software updates and new digital features can be delivered to end customers much faster and with higher quality.

The Group is also making progress in the heavy-duty truck segment. In New York City, the charity City Harvest has added three fully electric Volvo VNR Electric trucks to its fleet to replace older diesel vehicles. The cooling systems in these trucks are also powered entirely by batteries, resulting in zero local emissions. The vehicles are primarily used in the Hunts Point neighbourhood of the Bronx, where approximately 15,000 truck trips occur daily, and traffic-related exhaust emissions heavily affect residents.

The fleet renewal is part of the "Bronx is Breathing" environmental project, which is funded by a USD 10 million grant from the New York City Department of Energy. Thanks to the new commercial vehicles, the organization can increase its capacity to distribute rescued food to those in need by 25% this year, to 100 million pounds citywide.

The race for the cleanest fleet is well underway. Cummins demonstrates that even traditional diesel engines can become more efficient and produce lower emissions with new technology. Volvo, on the other hand, is pushing for a complete transition to electric trucks. In between, an exciting niche is opening up for dynaCERT. Millions of existing diesel engines will need to remain in operation for years to come. If HydraGEN™ can transition successfully from a pilot project to large fleets, even modest market penetration could drive significant revenue growth.