Volvo is planning to test a Kinetic Energy Regeneration System (KERS) for its road cars after receiving a large grant from the Swedish Energy Agency.
Unlike current road car systems that use the brakes and alternator to recoup energy as the car slows down, Volvo's system has a special flywheel that spins at up to 60,000rpm. As the flywheel spins, it acts as a generator to recharge the car's battery.
The battery in the test Volvo can then be used to help the car accelerate through a uniquely designed transmission, just as Formula One cars do when deploying their KERS system to help with overtaking.
Volvo's Vice President of Powertrain Engineering, Derek Crabb, said: "This technology has the potential to reduce fuel consumption by up to 20 per cent. It gives an extra horsepower boost to give a four-cylinder engine acceleration similar to a six-cylinder unit."
Volvo will carry out tests on European roads and says it expects the KERS technology to be offered in production models within the next few years.