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

Volvo Cars’ Taizhou manufacturing plant has switched to biogas, making it Volvo’s 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 our total Scope 1-3 emissions of 43 million tons, securing climate-neutral energy for our Taizhou plant is an important step towards our goal of having climate–neutral manufacturing operations by 2025 and reducing emissions across our global operations,” says an official Volvo press release. “This ambition is also part of our broader aim to reach net zero greenhouse gas emissions by 2040.”

Climate-neutral electricity use

Like all Volvo’s manufacturing plants worldwide, the Taizhou plant already uses climate-neutral electricity, and this latest move ensures that it also has climate-neutral heating. It’s the second Volvo car plant globally to become climate–neutral after the Torslanda facility in Gothenburg, Sweden.

“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.”

Volvo’s Taizhou plant’s energy supply comprises electricity and heating. Around 40% of its electricity needs are met by on-site solar panels, a share that is set to expand in the coming years. The remaining 60%, which comes from the grid, is also climate-neutral electricity from solar. With this latest switch, the heating need is met by using climate-neutral biogas. 

Sustainability strategy expanded

Volvo Cars recently expanded its sustainability strategy with new ambitious goals for the coming years. The new aim to reach zero greenhouse gas emissions by 2040 builds on the previous ambition of being climate neutral by 2040. It clarifies that the first priority is to reduce real emissions before turning to carbon removals to mitigate any unavoidable emissions. The manufacturer is also encouraging its suppliers to do the same.