- Volvo Construction Equipment (Volvo CE) collaborates with LS Electric to install solar panels at its Changwon facility in South Korea, aiming to receive an average of 55 GWh of renewable energy annually for the next 20 years.
- The partnership will play a significant role in achieving Volvo CE’s goal of reducing greenhouse gas emissions by 50% by 2030, part of its industry-leading commitment ratified by the Science Based Targets initiative.
- The Changwon facility will transition to 100% renewable energy by 2026, thereby saving approximately 21,000 tons of CO2 emissions annually, equivalent to planting 1.5 million pine trees.
Volvo Construction Equipment (Volvo CE) is taking a giant stride towards renewable energy, partnering with LS Electric to install solar panels at its Changwon facility in South Korea. As part of an ambitious purchase agreement, the company will buy green electricity from LS Electric for 20 years, from 2024 through to 2043. This pact is set to furnish Volvo CE’s Changwon facility with an impressive 55 GWh of renewable energy each year.
The results of this strategic move are twofold. Firstly, it will significantly shrink Volvo CE’s carbon footprint, cutting approximately 21,000 tons of CO2 emissions annually. This is akin to planting 1.5 million pine trees or preventing the consumption of around 10 million litres of petroleum from a thermal power plant. Secondly, the installation of the solar panels is forecasted to bring the facility to full renewable energy capacity by 2026.
This significant renewable energy shift is an integral part of Volvo CE’s industry-leading commitment ratified by the Science Based Targets initiative. The company is driving hard to attain net-zero greenhouse gas emissions across its value chain by 2040, with a crucial interim target of a 30% reduction in carbon emissions across product use by 2030.
“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.”Andrew Knight, Volvo CE Korea’s Head of Excavator Strategy & Managing Director
Beyond this renewable energy endeavor, Volvo CE continues to innovate, introducing electric forklifts and Automated Guided Vehicles (AGVs) into its operations. The company plans to phase out the use of kerosene for heating by 2026 and adopt LNG fuel electric energy by 2028.
In an ongoing mission to secure a stable supply of renewable energy, Volvo CE Korea intends to establish its own power grid and enter into a direct power purchase agreement with LS Electric. This would allow it to source electricity from external power generation facilities, marking another milestone in the construction giant’s path to sustainable operations.