With the intention of installing solar panels and a Factory Energy Management Solution (FEMS) at its Changwon site in South Korea, Volvo CE has inked a purchase agreement with energy supplier LS Electric. It is anticipated to offer about 55 GWh of renewable energy annually.
By doing this, Volvo CE in Korea will be able to cut CO2 emissions by around 21,000 tons per year, which is the same as planting 1.5 million pine trees or reusing about 10 million litres of fuel from a thermal power plant. By 2026, it is anticipated that this facility will only use renewable energy.
Volvo CE’s global Science Based Targets commitment, which seeks to achieve net zero value chain greenhouse gas emissions by 2040 with significant reductions starting as early as 2030, includes the provision of renewable energy as a key component. With a long history of emphasising environmental protection and leading industry transformation to combat climate change, the company’s interim 2030 goals include halving emissions from its own operations, facilities, and manufacturing processes in addition to achieving a 30% reduction in carbon emissions across the use of its products through its electrification roadmap.
Andrew Knight, Head of Excavator Strategy & Managing Director, Volvo CE Korea, says: “We are dedicated to sustainable growth and establishing pioneering partnerships to help accelerate that growth. With this agreement, Volvo CE aims to transition all electric consumption to renewable energy at the Changwon plant. Through this holistic approach, we are leading our industry’s transformation towards a carbon neutral future.”
The Changwon complex houses the company’s largest excavator production line, a department for research and development, and it also specialises in the production of pipelayers and demolition tools.
Along with this investment, the company has already started integrating automated guided vehicles (AGVs) and electric forklifts into its operations. Plans are also in place to gradually phase out the use of kerosene for heating, beginning in 2026, and to switch to LNG fuel electric energy by 2028.
In the future, Volvo CE in Korea plans to ensure a stable supply of renewable energy by establishing its own power grid and entering into a direct power purchase agreement (PPA) with LS Electric, enabling it to procure electricity from external power generation facilities.