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Volvo signs new wind power contract in an effort to phase out the use of fossil energy

Swedish trucking giant Volvo has signed a major new wind power supply agreement as part of a plan to phase out the use of fossil fuels and convert their trucks and buses to all-electric, or at least zero-emission clean energy.


Volvo has signed a 10-year power purchase agreement with another Swedish company, Vattenfall, to receive half of the electricity generated by the planned 140MW wind farm in Bruzaholm, to be built and operational by 2025. Volvo says the wind agreement is an important step in its plan to replace remaining fossil energy sources with low-GHG renewable energy sources such as wind, solar, and hydro, and at the same time support the social transition to renewable electricity.


European car magnate Volvo has also made drastic shifts in access to clean energy sources.
European car magnate Volvo has also made drastic shifts in access to clean energy sources.

In a resolute statement, Martin Lundstedt, president and CEO of the Volvo Group, underlined the company's unwavering commitment to prioritizing investments in low-carbon operating systems and delivering renewable energy. Lundstedt emphasized that this agreement signifies their dedication to tackling climate change head-on while driving innovation. The Volvo Group's science-based goal of achieving net-zero emissions by 2040 showcases their significant progress in reducing the environmental impact of their operations.


Echoing the urgency for action, Anna Borg, CEO and president of Vattenfall, emphasized that the energy transformation in the industry is not a distant future prospect, but a current reality. Borg emphasized that the key to success lies in collaboration, as no single entity can single-handedly overcome the challenges at hand. Her words reflect defiance against complacency and a rallying call for collective efforts towards a sustainable future.


The agreement between the Volvo Group and Vattenfall resonates as a resounding commitment to sustainability and the imperative to address climate change promptly. By prioritizing investments in low-carbon systems and renewable energy, the Volvo Group is making tangible strides towards its ambitious net-zero emissions target. Vattenfall's emphasis on collaboration underscores the necessity of united action, recognizing that the transformation required to combat climate change is a collective endeavor.


The visionary partnership between the Volvo Group and Vattenfall serves as a powerful catalyst for change, inspiring others in the industry to follow suit. Their shared understanding of the importance of innovation and collaboration underscores their leadership in driving the low-carbon transformation. With their combined expertise and resources, the Volvo Group and Vattenfall are poised to lead the way toward a greener, more sustainable future.


As the Volvo Group and Vattenfall unite their efforts, their collaborative approach sends a resolute message: collective action is the driving force behind meaningful change in combating climate change. This partnership serves as an exemplary model for the industry, encouraging others to prioritize sustainability, innovate boldly, and collaborate relentlessly. By doing so, we can forge a path toward a more sustainable and resilient future for generations to come.


In a recent development, a Volvo spokesperson confirmed that the company has entered into its first power purchase agreement (PPA) for wind energy in Sweden. This agreement marks a significant milestone for Volvo, as it expands its renewable energy portfolio beyond existing PPAs, such as the one for wind energy produced near a Volvo plant in Ghent.


The spokesperson highlighted that Volvo Group is committed to sourcing 100% renewable electricity in Sweden, with hydro-generated power constituting the largest share. With the new PPA for wind power, Volvo Group further strengthens its renewable energy procurement strategy. In 2022, an impressive 48% of the total energy used by Volvo Group's global operations, encompassing production, technology centers, warehouses, and dealership sites, came from renewable sources.


Sweden, already a frontrunner in wind energy, boasts an operational wind fleet of 14.7 GW, according to Windpower Intelligence, the research and data division of Windpower Monthly. Notably, Vattenfall, a key player in the renewable energy sector, has contributed to the development of 9.17% of this wind capacity.



Notably, Vattenfall, a key player in the renewable energy sector, has contributed to the development of 9.17% of this wind capacity.
Notably, Vattenfall, a key player in the renewable energy sector, has contributed to the development of 9.17% of this wind capacity.

'This latest move by the Volvo Group reflects its unwavering commitment to sustainable practices and the transition to renewable energy sources. By embracing wind power through this PPA, Volvo Group takes a significant step forward in reducing its carbon footprint and aligning its operations with clean energy objectives.


The Volvo Group's foray into wind energy in Sweden underscores the growing importance of renewable sources in the country's energy landscape. As more companies and organizations recognize the benefits of renewable energy, the demand for wind power and other sustainable alternatives continues to rise.


Volvo Group's decision to diversify its renewable energy sources with wind power sets a positive example for other industry leaders. By actively pursuing innovative solutions and partnering with renewable energy providers like Vattenfall, companies can contribute to the ongoing energy transition and drive sustainable practices forward. This partnership demonstrates their shared determination to drive innovation and tackle climate change while inspiring others in the industry to join the global movement toward a sustainable future.


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JUNE 2024 NEWS SUMMARY

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