Volvo Chengdu Car Plant
9:00 PM | June 22 2020

Volvo Cars plant powered by 100% renewable electricity

A milestone for Volvo Cars’ largest factory in China takes the company closer towards its ambition of climate-neutral manufacturing by 2025.
Volvo Cars has taken another significant step towards its ambition to have climate-neutral manufacturing by 2025, with confirmation that its largest manufacturing plant in China is now powered by 100 per cent renewable electricity. 
The company’s Chengdu plant (pictured above in action) achieved its milestone as the result of a newly signed supply contract, which will reduce the plant’s CO2 emissions by more than 11,000 tonnes per year. 
Volvo Cars’ global renewable electricity mix in its manufacturing network has now reached 80 per cent. 
The climate-neutral manufacturing goal is part of a wider climate plan that aims to reduce the overall carbon footprint per car by 40 per cent between 2018 and 2025. Volvo Cars aims to have a net zero carbon footprint by 2040. 
The Chengdu plant’s new electricity contract is also in line with broader ambitions in China to reduce carbon emissions from industry and reduce the carbon footprint resulting from energy generation. The plant already sourced 70 per cent of its electricity from renewable sources and this new contract addresses the remaining 30 per cent. 

Volvo Hydropower station
Above: A hydropower station dam in Chengdu. Nearly two-thirds of the electricity supply for Volvo Cars’ Chengdu plant in China comes from hydropower. 
Under the new contract, about 65 per cent of the electricity supply comes from hydropower, while the remainder comes from solar power, wind power and other renewable sources.  
“Our ambition is to reduce our carbon footprint through concrete, tangible actions,” said Javier Varela, head of industrial operations and quality. “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.” 
Volvo Cars is constantly working to reduce the carbon footprint of its manufacturing network and has reached several milestones in recent years. All of its European plants have had a climate-neutral electricity supply since 2008, while in 2018  the engine plant in Skövde, Sweden, was the first in the company’s network to have no net carbon (greenhouse gas) emissions. 
At the Ghent plant in Belgium, Volvo Cars installed 15,000 solar panels in 2018, the first large-scale introduction of solar energy in its global manufacturing network. 
The move towards climate-neutral manufacturing operations is complemented by other steps, such as the carbon emissions in the company’s wider operations, including its supply chain, and through recycling and reuse of materials. Volvo Cars is also aiming for fully electric cars to account for half of its global sales by 2025. 
All these and other measures are part of the climate plan Volvo Cars launched in late 2019 –one of the most ambitious in the automotive industry.  

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