Published on April 15th, 2024 | by Subhash Nair


Volvo Cars Reaches Climate Neutrality Milestone at Taizhou Plant in China

Volvo Cars has switched to biogas at its Taizhou plant in China for climate neutrality.

Volvo Cars has achieved a significant sustainability milestone at its Taizhou manufacturing plant in China. The plant has now switched to using biogas, making it Volvo’s first climate-neutral facility in the country. Back in 2021, the company moved their other Chinese plant in Daqing to biomass and wind power and cut emissions by 34,000 tonnes.

The transition from natural gas to biogas will result in a reduction of more than 7,000 tonnes of CO2 emissions per year. This is an important step towards Volvo’s overarching goal of having climate-neutral manufacturing operations by 2025 and reaching net-zero greenhouse gas emissions across its global operations by 2040.

“We’re acting fast when viable climate-neutral energy alternatives become available,” said Javier Varela, Chief Operating Officer and Deputy CEO at Volvo Cars. “The switch to biogas at our Taizhou plant demonstrates how each of our manufacturing locations across the globe is developing its own climate-neutral energy mix, based on what’s available in the region.”

The Taizhou plant’s energy supply comprises electricity and heating, with around 40% of its electricity needs currently met by on-site solar panels. The remaining 60% of the plant’s electricity is sourced from climate-neutral grid-supplied solar power. The recent switch to biogas has now ensured that the plant’s heating needs are also met by climate-neutral energy.

Volvo Cars climate neutral plant in China

Volvo Cars’ sustainability strategy has been continuously evolving, with the company setting even more ambitious goals for the coming years. The company’s new aim is to reach zero greenhouse gas emissions by 2040, prioritizing the reduction of real emissions before turning to carbon removals to mitigate any unavoidable emissions.

“Since the release of our company’s first sustainability strategy in 2019, we have made good progress towards our climate action targets,” the company stated. “On top of reducing CO2 emissions from our total operations by using 74% climate-neutral energy, we are also progressing well towards our overall CO2 targets.”

The Taizhou plant’s transition to biogas is a significant step forward in Volvo Cars’ journey towards sustainable manufacturing. As the company continues to push the boundaries of what’s possible in the automotive industry, it remains committed to reducing its environmental impact and leading the way towards a more sustainable future.

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