Volvo's Taizhou Plant Transitions To Biogas To Achieve Climate Neutrality

Volvo Cars' manufacturing plant in Taizhou, China has transitioned to biogas, making it the company's first climate-neutral facility in the country. This move will result in a reduction of more than 7,000 tonnes of CO2 emissions per year, a substantial contribution to Volvo Cars' objective of achieving climate-neutral manufacturing operations by 2025.

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While the Taizhou plant's emissions represent only a small fraction of Volvo Cars' total global Scope 1-3 emissions of 43 million tonnes, the transition to biogas marks an important milestone in the company's broader sustainability strategy. This initiative also aligns with Volvo Cars' aim to reach net-zero greenhouse gas emissions across its global operations by 2040, an ambitious target that builds upon its previous goal of becoming climate-neutral by the same year.

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The Taizhou plant's energy supply comprises electricity and heating. Approximately 40 per cent of its electricity needs are met through on-site solar panels, with the remaining 60 per cent sourced from the grid as climate-neutral solar electricity. With the recent switch to biogas for heating, the plant has achieved climate-neutral status, following in the footsteps of Volvo Cars' Torslanda facility in Gothenburg, Sweden, which had previously attained this distinction.

Javier Varela, Volvo Cars' Chief Operating Officer and Deputy CEO, emphasized the company's proactive approach, stating, "We're acting fast when viable climate-neutral energy alternatives become available. 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."

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As part of its enhanced sustainability strategy, Volvo Cars aims to prioritize reducing real emissions before considering carbon removals to mitigate any unavoidable emissions. The company is also encouraging its suppliers to adopt similar ambitious goals and strategies to collectively drive progress towards a more sustainable future for the automotive industry.