Volvo Cars uses biogas to achieve its first climate-neutral plant in China

GOTHENBURG: Volvo Cars' Taizhou plant has switched to biogas, making it its first plant in China to achieve climate-neutral status. The plant’s switch from natural gas will result in a reduction of more than 7,000 tonnes of CO2 per year.

Despite being a small share of Volvo's total Scope 1-3 emissions of 43 million tonnes, securing climate-neutral energy for its Taizhou plant is an important step towards its goal of having climate-neutral manufacturing operations by 2025 and reducing emissions across its global operations.

This ambition is also part of its broader aim to reach net zero greenhouse gas emissions by 2040.

Just like all Volvo's plants worldwide, the Taizhou plant already used climate-neutral electricity, and this latest move makes sure that it also has climate-neutral heating. It’s Volvo's second car plant globally to become climate-neutral after its Torslanda facility in Gothenburg, Sweden.

“We’re acting fast when viable climate-neutral energy alternatives become available,” said Volvo Cars chief operating officer and deputy CEO Javier Varela.

“The switch to biogas at the Taizhou plant demonstrates how each of Volvo's 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. It produces around 40 per cent of its electricity need from on-site solar panels – a share that is set to expand in the coming years.

The remaining 60 per cent, which comes from the grid, is also climate-neutral electricity from solar. Its heating need is, with this latest switch, met by using climate-neutral biogas.

Volvo Cars recently expanded its sustainability strategy with new ambitious goals for the coming years.

Its new aim to reach zero greenhouse gas emissions by 2040 builds on its previous ambition of being climate neutral by 2040. It clarifies that its first priority is to reduce real emissions before turning to carbon removals to mitigate any unavoidable emissions. It is also encouraging its suppliers to do the same.

Since the release of its company’s first sustainability strategy in 2019, Volvo has made good progress towards its climate action targets.

On top of reducing CO2 emissions from its total operations by using 74 per cent climate-neutral energy, Volvo said it is also progressing well towards its overall CO2 targets.