The Volvo V60 Bi-Fuel is expected to go on sale in October this year in Sweden. The 5-cylinder turbocharged engine meets Sweden’s new, stricter environmental regulations and runs on either compressed natural gas (CNG) or gasoline.

Meeting the new 2013 regulations qualifies the vehicle owner for tax incentives. For those who purchase a Volvo V60 Bi-Fuel as a company car, the taxable benefit value is a maximum of 16,000 SEK or $2,470. Under a new proposal put forth by the Swedish government, this benefit will be extended through 2016. Qualified customers will also be exempt from vehicle tax for five years.

Optionally, the car can be fitted with a larger CNG tank to enable an extended range of 1,200 kilometers or 7,456 miles. Light-weight composite gas cylinders are located under the car’s luggage compartment.

The vehicle is reinforced and adapted specifically to run on natural gas at the Volvo Car Group’s engine plant in Skövde, Sweden, which is 150 kilometers or 93 miles northeast of Gothenburg and is then fitted with a Westport-Sweden gas fuel management system at Volvo’s Torslande plant in Gothenburg, Sweden.

Westport and Volvo Car Group are currently in discussions to expand the Volvo V60 Bi-Fuel car into other markets.