AGCO Power Opens Clean Energy Laboratory in Finland
AGCO, a leader in agricultural machinery, has opened its first clean energy laboratory in Nokia, Finland, through its subsidiary AGCO Power. This initiative is part of a €70 million investment aimed at advancing sustainable battery and powertrain solutions for farm machinery. The lab will focus on developing next-generation engines powered by low- or zero-carbon electricity and alternative fuels like hydrogen and methanol. AGCO aims to launch its first fully electric tractor, the Fendt e100 V Vario, in 2024. Additionally, AGCO has set ambitious targets to reduce its emissions by up to 90% by 2050. The Linnavuori plant will also see expansions in its production facilities, covering 11,000 square meters, with full operations expected by 2025.
- AGCO opens its first clean energy laboratory in Nokia, Finland.
- The €70 million investment aims to develop sustainable powertrain solutions.
- AGCO plans to launch the first fully electric tractor in 2024.
- The lab focuses on low- and zero-carbon electricity and alternative fuels like hydrogen and methanol.
- AGCO aims to reduce Scope 1 and Scope 2 emissions by 55% by 2033 and 90% by 2050.
- Expansion of the Linnavuori plant will cover 11,000 square meters.
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Insights
AGCO's opening of a clean energy laboratory is a significant step forward in the quest for sustainable agricultural machinery. This initiative, focusing on developing low- and zero-carbon power solutions, is critical as agriculture remains a major contributor to global greenhouse gas emissions. The lab's focus on technologies such as hydrogen and methanol engines, as well as electrification of off-road machinery, reflects a broader industry trend towards sustainable innovation. The successful development of these technologies could set AGCO apart from competitors, creating a competitive edge in a market increasingly focused on sustainability.
For retail investors, it's worth noting the industry's challenge in adopting alternative energy solutions for heavy machinery due to current battery limitations. AGCO’s commitment to overcoming these constraints positions it as a frontrunner in this critical technological shift, suggesting potential long-term growth and market leadership.
AGCO's substantial investment of
Moreover, the introduction of the fully electric tractor, the Fendt e100 V Vario, into production in 2024 could be a revenue driver, especially if market demand for sustainable farming solutions continues to rise. Investors should monitor upcoming financial results to assess the tangible impact of these innovations on AGCO's bottom line.
Leading global manufacturer of engines for agricultural and other machinery advancing innovations to achieve low- and zero-carbon solutions for farming
NOKIA,
AGCO Power's Director of Engineering Kari Aaltonen in front of a hydrogen combustion engine in the new Clean Energy Laboratory. (Photo: Business Wire)
The Linnavuori team of scientists and engineers are developing next-generation engines powered by low- or zero-carbon electricity and alternative fuels, such as hydrogen and methanol, that will help minimize global agricultural emissions.
While the number of hybrid and electric vehicles on world roadways has grown exponentially in the 21st century, adoption of alternative power for off-road/farm machinery has lagged. The capacity of existing battery technologies restricts the size of fully electric farm machinery, but the AGCO Power lab is working to change that paradigm.
“We are investing heavily in the research and development of multiple lower carbon technologies, such as the electrification of off-road machines and hybrids,” said Kelvin Bennett, AGCO’s senior vice president of engineering. “It is exciting to know those investments will start showing tangible results this summer when the first fully electric tractor, the Fendt e100 V Vario, enters production in 2024. “
In addition to the off-road machine emissions, AGCO is aggressively pursuing reductions in emissions in its own operations. Specifically, it has set objectives to reduce its Scope 1 and Scope 2 emissions
Development of next-generation zero- and low-emission machines is a focus of the company’s sustainability ambition as it seeks to reduce its Scope 3 emissions. Key initiatives include decarbonizing its product portfolio, engaging suppliers to decrease their emissions, supporting farmers’ transition to sustainable solutions, and working with industry associations on renewable and low-carbon fuels in agricultural machinery.
In addition to the clean energy laboratory, the Linnavuori plant features new production facilities for both cylinder heads and continuously variable transmission components, expansions to the paint shop and testing facilities for remanufactured engines, and a training and visitor center. In total, the new buildings cover an expanse of 11,000 square meters (approximately 118,400 square feet), with some phases of the project opening this year and others set to be operational in 2025.
About AGCO
AGCO (NYSE: AGCO) is a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology. AGCO delivers value to farmers and OEM customers through its differentiated brand portfolio including core brands like Fendt®, GSI®, Massey Ferguson®, PTx and Valtra®. AGCO's full line of equipment, smart farming solutions and services helps farmers sustainably feed our world. Founded in 1990 and headquartered in
About AGCO Power
AGCO Power is one of the world's leading developers and manufacturers of off-road engines. It builds engines for many of the world's most famous tractor brands, such as Fendt, Valtra and Massey Ferguson at facilities in
View source version on businesswire.com: https://www.businesswire.com/news/home/20240709849620/en/
AGCO Power Inc.
Communications Manager
Vilja Pylsy
Vilja.Pylsy@AGCOcorp.com
Source: AGCO Power
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