• 04/28/2024
  • Report
  • Sustainability & CO2 neutrality

Volvo Cars uses biogas for first climate-neutral plant in China

The Volvo Cars plant in Taizhou has switched to biogas, making it the first plant in China to achieve climate-neutral status, according to the company. The elimination of natural gas is expected to lead to a reduction of more than 7,000 tonnes of CO2 per year.

Volvo Cars plant at Taizhou
Taizhou has already been supplied with climate-neutral electricity. After Torslanda in Gothenburg, this makes the plant the Group's second car plant worldwide to become climate-neutral.

Although this is only a small part of the total Scope 1-3 emissions of 43 million tonnes, Volvo Cars sees securing climate-neutral energy for the Taizhou plant as an important step towards the goal of having climate-neutral production by 2025 and reducing emissions in all operations worldwide.
Javier Varela
<span style="color: rgb(19, 19, 19); font-family: &quot;Open Sans&quot;, Arial, sans-serif; font-size: 13px; font-style: normal; font-weight: 400;">Javier Varela, chief operating officer and deputy CEO at Volvo Cars</span>

“Each manufacturing location is developing its own energy mix”

“We’re acting fast when viable climate-neutral energy alternatives become available,” says 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 energy supply in Taizhou consists of electricity and heat. Around 40 per cent of the electricity required is generated by solar cells on site - a proportion that is set to increase in the coming years. The remaining 60 per cent, which comes from the grid, is also climate-neutral solar power. Since this changeover, the heat requirement has been covered by climate-neutral biogas.

Request to suppliers

Volvo Cars recently expanded its sustainability strategy with new targets. Greenhouse gas emissions are to reach 0 by 2040. This prioritises the reduction of emissions over carbon capture. Volvo Cars has asked its suppliers to do the same.

In 2023, the Volvo Car Group's turnover reached the equivalent of 34.3 billion euros, with global sales rising to a record of around 709,000 vehicles.
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