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January 17, 2018

Climate neutral operations in Skövde Factory

Climate neutral operations in Skövde Factory
Volvo Cars’ engine factory in Skövde, Sweden, has become our first climate neutral manufacturing plant. This marks a significant step towards our vision of having climate neutral global manufacturing operations by 2025 – a key element of our sustainability programme. As of 1 January, Volvo’s Skövde plant has switched to renewable heating, making it one of only a few climate-neutral automotive plants in Europe.  

"The Skövde plant achievement is an important addition to our broader efforts in minimising our environmental footprint. We are pleased to be a leader within the automotive industry in the move towards climate-neutral manufacturing," says Javier Varela, our head of Manufacturing and Logistics.

Lena Bergqvist, the new plant manager in Skövde, agrees: "This is a proud moment for us. We've been working long and hard both to minimize energy consumption in the plant and to make sure that the heat and electricity we use is green and clean," she says.

A new agreement between Volvo Cars and the local energy provider Skövde Värmeverk ensures that all heating supplied to the Skövde plant is generated from waste incineration, biomass and recycled bio-fuels. The electricity supply, like the supply in our other European plants, has come from renewable sources since 2008.

The collaboration with Skövde Värmeverk will reduce CO2 emissions significantly, a boon for the local community around Skövde.
"Volvo Cars places very high demands on sustainability from its energy suppliers. It's great that large companies have this mindset," says Sammy Tanhua, CEO of Skövde Värmeverk, and adds: "It's not only that the heat comes from renewable resources, but also that these resources all come from the local area."

The positive impact on the surrounding community is also something that plant operator Robert Brage highlights: "When major players like us at Volvo Cars and the local heat supplier collaborate and achieve climate-neutral operations, it's a boost for society."