Volvo CE's Changwon facility will run on solar power.Deal is expected to provide approximately 55 GWh of solar power a year to Changwon facility
Volvo Construction Equipment has signed a purchase agreement with power provider Korean company LS Electric to install solar panels and a factory energy management solution at its Changwon facility in South Korea.
Volvo CE has committed to buy green electricity for 20 years beginning in 2024. It is expected to provide approximately 55 GWh of renewable energy a year and the site is expected to be running on 100% renewables by 2026.
Volvo CE’s has established a global Science Based Targets commitment, which is intended to tackle net zero value chain greenhouse gas emissions by 2040, with significant reductions planned by 2030.
Andrew Knight (pictured right), Head of Excavator Strategy & Managing Director at Volvo CE Korea, said the company is “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.”
He said the company’s interim 2030 goals are to not only achieve a 30% reduction in carbon emissions across the use of its products through its electrification roadmap, but to cut emissions in half across its own operations, facilities and manufacturing processes.
Automated vehicles
The Changwon facility is the company’s biggest excavator production site and also specializes in the manufacturing of demolition equipment and pipelayers, as well as having a research and development department.
It has already begun to introduce electric forklifts and automated guided vehicles into its operations, with plans also underway to gradually phase out the usage of kerosene for heating, starting in 2026, and implement a conversion to LNG fuel electric energy by 2028.
Volvo CE said that in the future in Korea it also plans to ensure a stable supply of renewable energy by establishing its own power grid and entering into a direct power purchase agreement with LS Electric, enabling it to procure electricity from external power generation facilities.
