GHG Emissions, Industrial, Sourcing Renewables  -  April 18, 2024

Volvo Cars Deploys Biogas in China

Volvo Cars announced its Taizhou manufacturing plant made the switch to biogas, making it the company’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 tons of CO2 annually. 

Achieving climate-neutral energy for the Taizhou plant is an important step towards the automaker’s goal of having climate-neutral manufacturing operations by 2025 and reducing emissions across its global operations. This goal is also part of the broader aim to reach net zero greenhouse gas emissions by 2040.

Similar to Volvo’s other manufacturing plants worldwide, the Taizhou plant already used climate-neutral electricity. This latest move ensures it also has climate-neutral heating.

This is the second car plant globally to become climate-neutral, the first one being 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, in a statement. “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 Taizhou plant’s energy supply comprises electricity and heating and produces around 40% of its electricity need from on-site solar panels. The remaining 60% comes from the grid and solar power. 

Volvo has lowered CO2 emissions from its total operations by using 74% climate-neutral energy.