Volvo's largest Chinese plant now uses 100% clean energy - Smart Energy Decisions

Commercial, Hydro, Sourcing Renewables  -  June 22, 2020

Volvo's largest Chinese plant now uses 100% clean energy

Volvo Cars announced June 5 that their largest plant in China is now powered by 100% renewable electricity, bringing their global manufacturing electricity use to 80% renewable energy.

The manufacturing plant in Chengdu expects to reduce its carbon emissions by 11,000 tons under the newly signed energy contract that gets the plant to 100% clean energy. The new contract signed this month covers 30% of the plant’s electricity, while 70% was already sourced from renewable sources.

Around 65% of the electricity supply comes from hydropower, while the remaining comes from solar, wind and other renewable sources.

Volvo Cars has previously committed to having carbon-neutral manufacturing by 2025 and be a carbon-neutral company by 2040. The company plans to reduce their overall carbon footprint per car by 40% between 2018 and 2025.

“Our ambition is to reduce our carbon footprint through concrete, tangible actions,” Javier Varela, head of industrial operations and quality, said in a statement. “Securing a fully renewable electricity supply for our largest plant in China is a significant milestone and underlines our commitment to taking concrete, meaningful action.”

In addition to their operational goals, Volvo Cars also hope to generate 50% of their global sales from fully electric cars by 2025, with the remaining 50% being hybrid vehicles.

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