Volvo Cars’ manufacturing plant in Chengdu, its largest in China, is now powered by 100% renewable electricity. The move takes the company’s global renewable electricity mix in its manufacturing network to 80%.
The 100% renewable electricity mix in Chengdu is the result of a newly signed supply contract that will reduce the plant’s CO2 emissions by more than 11,000 tonnes annually.
It is the latest concrete step towards Volvo Cars’ ambition to have climate-neutral manufacturing by 2025. The new move is also part of a wider climate plan that aims to reduce Volvo’s overall carbon footprint per car by 40% between 2018 and 2025.
By 2040, Volvo Cars aims to be a climate-neutral company.
The new electricity contract is also in line with broader ambitions in China to reduce carbon emissions from industry and reduce the carbon footprint from energy generation.
Until recently, the Volvo Chengdu plant already sourced 70% of its electricity from renewable sources. The new contract addresses the last 30%. Under the new contract, around 65% of the electricity supply will come from hydropower.
The remainder comes from solar, wind, and other renewable sources.