Tokyo-based Komatsu (OTC: KMTUY), the world's No. 2 construction equipment maker behind Caterpillar, announced plans to start selling a hybrid excavator in June.

The new machine, called the PC200-8 Hybrid, is a diesel electric version of Komatsu's medium-size hydraulic excavator, which the company said is its main construction machine.

The hybrid uses an electric motor to turn its upper structure.

The company said the new system could reduce the fuel consumption by about 25 percent on average compared to its regular diesel excavator.

Komatsu said that in field tests where the excavator's upper structure made frequent turns, it recorded a maximum reduction of fuel consumption of 41 percent.

The big shoveling machine also uses regenerative braking to charge up, with the electric motor collecting energy generated when the upper structure of the excavator slows down while turning.

The energy collected is converted into electric energy and stored in a capacitor, which the company said can quickly charge and discharge electricity.

Komatsu released a hybrid forklift last May that combined a battery and a capacitor.

The new machine, which the company said is the world's first hybrid excavator, is priced at $256,445.