Volvo's Daqing plant powered completely by climate-neutral energy

Volvo Cars' manufacturing plant in Daqing, China, is now powered by 100% climate-neutral electricity and follows in the footsteps of Volvo's other large Chinese manufacturing plant in Chengdu, which reached the same milestone last year.

With the addition of Daqing, Volvo Cars' global manufacturing network is now powered by close to 90% climate-neutral electricity, an important step towards Volvo's goal of making its manufacturing operations climate neutral by 2025.

Going forward, the Daqing plant in Heilongjiang province will be powered by electricity generated from biomass and wind power, which is estimated to bring down the plant's annual CO₂ emissions by around 34,000 tonnes. More specifically, the biomass power plants that supply the Daqing site are using locally and sustainably sourced agricultural and forestry residues.

Apart from the Daqing milestone, Volvo Cars has also made further progress in emission reduction around its China plants. It has been in close contact with its local suppliers in recent months, encouraging them to follow suit and switch to 100% climate-neutral power. The response thus far has been very positive.

For Volvo Cars to achieve its target of climate-neutral manufacturing operations by 2025, it needs access to climate-neutral electricity and heating. Achieving this target requires Volvo Cars to find local partners in government and business that support development of sustainable alternatives.

Volvo Cars' climate-neutral manufacturing target is part of Volvo's climate plan, one of the most ambitious in the automotive industry. The centrepiece of the plan is Volvo Cars' ambition to be a fully electric car brand by 2030, with only pure electric cars in its line-up.

Yet the plan goes beyond addressing tailpipe emissions through all-out electrification and also seeks to tackle carbon emissions in the company's wider operations, its supply chain and through recycling and reuse of materials. In the short term, these and other steps aim to reduce the lifecycle carbon footprint per car by 40% between 2018 and 2025. By 2040, Volvo Cars aims to be a climate-neutral company.