By announcing today that Torslanda is its first automotive production plant to achieve full climate neutrality status, Volvo Cars is today taking a significant step forward on its ambition to make its global production network climate neutral. by 2025.

Torslanda is the second plant in its global production network to achieve this status after the Skövde engine plant in Sweden which became climate neutral in 2018.

Volvo Cars considers a production site to be fully climate neutral when it experiences no net increase in greenhouse gas emissions into the atmosphere as a result of the use of electricity and heating by the factory.

The Torslanda plant, the company’s oldest, has been powered by climate neutral electricity since 2008. It also now has a climate neutral heating system. Half of the plant’s heating comes from biological gas while the other half comes mainly from centralized heating generated by industrial thermal waste.

Besides becoming climate neutral, the Torslanda site is also constantly reducing the amount of energy it uses. Targeted improvements to its operations during 2020 resulted in annualized energy savings of almost 7,000 megawatts per hour (MWh), equivalent to the annual energy consumption of more than 450 Swedish homes.

In the coming years, the plant plans to further improve the energy efficiency of its lighting and heating systems, among others, which is expected to generate additional annual energy savings of around 20,000 MWh of by 2023. These energy savings are part of a larger plan for Volvo Cars to reduce energy consumption per vehicle built in its network by 30% by 2025.

For Volvo Cars to achieve its goal of climate neutrality in production operations, the company needs the full support of local partners across government and business to have access to climate-neutral electricity and heating. In addition, Volvo Cars will develop its own capacity to generate renewable electricity on site.

Volvo Cars’ production goal of climate neutrality is part of the company’s Climate Plan, which is one of the most ambitious in the automotive industry. This plan is essentially based around Volvo Cars’ ambition to electrify its entire range.

However, the plan is not limited to reducing tailpipe emissions through full electrification. The company also plans to tackle carbon emissions across all of its activities, throughout its supply chain and through the recycling and reuse of materials by integrating the circular economy.