Volvo L120 Electric makes commercial debut in Oceania

Volvo Construction Equipment (Volvo CE) has completed the first commercial delivery of its L120 Electric wheel loader in Oceania, supplying a machine to infrastructure specialist Fulton Hogan in New Zealand. The milestone follows a successful six-month trial in which Fulton Hogan tested a pre-commercial version of the electric model. The newly delivered unit now represents a more permanent addition to Fulton Hogan’s fleet and marks the first full commercial agreement for the L120 Electric in the region.

Fulton Hogan, a long-standing Volvo CE customer with a sharp focus on sustainability, will use the L120 Electric for rehandling of materials on civil construction projects. The company previously collaborated with Volvo CE as a global test partner for the EC480 Hybrid excavator, immediately purchasing the model after trials.

This latest delivery highlights the strength of the relationship between Volvo CE, retail partner TDX, and Fulton Hogan, as well as the growing demand for low-emission construction equipment in a region with ambitious climate goals. Following a recent visit to the Volvo CE Customer Center in Sweden, Fulton Hogan’s CEO also decided to expand their fleet with two Volvo FMX Electric trucks from Volvo Trucks. In addition, Fulton Hogan has acquired New Zealand’s first electric crusher for quarry operations. Though not a Volvo product, it further demonstrates Fulton Hogan’s commitment to reducing emissions.

“Fulton Hogan is an influential first reference customer for the L120 Electric in Oceania,” said Bertrand Colette, Head of Site Solutions Oceania at Volvo CE. “Their commitment to innovation and sustainability makes them an ideal partner as we expand our electromobility offering to the region.”

Wayne Richardson, manufacturing product and sales manager at Fulton Hogan, said: “We’re keen on pushing boundaries and trying new equipment out. So far, it’s all been positive. In a perfect world, we’d go 100% electric.

“Plus, we feel the equipment is nicer to operate. When you get out of the cab at the end of the day, you feel as if you’ve had a good day at work.”

New Zealand’s strong sustainability agenda and abundant renewable energy create the perfect conditions for electric construction equipment. A total cost of ownership (TCO) analysis conducted by Volvo CE shows that, in New Zealand, the L120 Electric offers lower operating costs than an equivalent diesel machine.

James Weller, Auckland regional manager at Fulton Hogan, said: “The new Volvo loader offers a quieter, safer operation, and we're optimistic about the financial benefits too. Charging it daily is far more cost-effective than refuelling with diesel, especially with current energy prices.”

A rent-to-rent model for new technology

Volvo CE has introduced a rent-to-rent business model for the L120 Electric in Oceania. This approach differentiates Volvo CE from other equipment brands requiring customers to commit to outright purchases and reflects the manufacturer’s full confidence in the quality and longevity of the engineering.

In this case, Volvo CE retains ownership of the machine, renting it to New Zealand retail partner TDX, who in turn rents it to Fulton Hogan under a five-year, 2,000-hours-per-year agreement that includes servicing. This model reassures customers when adopting new technology, while enabling Volvo CE to gain valuable operating data to support its future development.

“Offering rent-to-rent has allowed us to strengthen relationships with our dealers and customers while differentiating ourselves from the competition,” Bertrand Collette said. “This model gives us a strong foundation for introducing the L120 Electric in Oceania.”

The first commercial delivery of the L120 Electric marks a significant step forward for Volvo CE’s strategy in Oceania, reinforcing the company's commitment to sustainable construction and innovative business models that ease the path for our customers.