Volvo continues renewable energy shift with solar investment

Volvo CE has announced it has signed a purchase agreement with LS Electric for the implementation of solar panels and a Factory Energy Management Solution (FEMS) at its Changwon facility in South Korea.

The manufacturer has committed to buy the green electricity for a span of 20 years and is expected to provide approximately 55GWh of renewable energy annually.

This, Volvo explained, will enable the business in Korea to reduce around 21,000 tons of CO2 emissions per year. This site is expected to be running 100% renewable energy by 2026.

Andrew Knight, head of excavator strategy & MD, Volvo CE Korea, said, “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 facility is the company’s biggest excavator production site and also specialises in the manufacturing of demolition equipment and pipelayers, as well as having a research and development department.

The firm has started to introduce electric forklifts and Automated Guided Vehicles (AGVs) into its operations, with plans 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.