Volvo Cars recently initiated a shift towards renewable fuel for the vast seafaring journeys of tens of thousands of containers destined for its factories across the globe. As the first global car manufacturer to make such an announcement, Volvo Cars anticipates an immediate reduction of 55,000 tonnes of fossil CO2 emissions annually from intercontinental ocean freight. This pivotal move is expected to reduce CO2 emissions by an impressive 84 percent compared to traditional fossil fuels, equivalent to the emissions of a truck circumnavigating the equator approximately 1,200 times.
The renewable fuel employed in this endeavor is Fatty Acid Methyl Esters (FAME), derived from renewable and sustainable sources, predominantly waste cooking oil. Notably, no feedstock associated with palm oil or its production is utilized in this process. This transformative shift will encompass inbound ocean container transports of production materials destined for manufacturing plants in Europe and the Americas, as well as global spare parts distribution facilitated by ocean container transports.
Javier Varela, Volvo Cars Chief Operating Officer and Deputy CEO, emphasizes that while renewable fuel is not the ultimate solution for eliminating CO2 from global ocean freight, this initiative serves as a tangible action with immediate, substantial results. Varela stresses the importance of inspiring other car manufacturers to join the cause, fostering increased demand for carbon-efficient ocean transports and establishing renewable fuels as a viable mid-term solution.
Collaborating closely with logistics partners Maersk, Kuehne+Nagel, and DB Schenker, Volvo Cars ensures a comprehensive implementation of renewable fuel. As of June 1, 2023, these logistics service providers have transitioned to renewable fuel for the energy equivalent needed for all container transports conducted for Volvo Cars. In instances where renewable fuel is unavailable for a specific shipment, logistics partners utilize renewable fuel allocation for another customer’s route, ensuring a consistent reduction in fossil fuel use across container vessels. This practice, known as mass-balancing, undergoes regular third-party audits to maintain transparency and accountability. Additionally, the renewable fuel itself is certified and produced without competing with food crops, aligning with the sustainability standards set by the EU Renewable Energy Directive.
Javier Varela emphasizes Volvo Cars’ ongoing commitment to sustainability across its supply chain and overall business. The company’s initiatives align with its ambitious goal of becoming a climate-neutral entity by 2040. To achieve this, Volvo Cars aims to reduce the lifecycle carbon footprint per car by 40 percent between 2018 and 2025, necessitating a 25 percent reduction in operational emissions, including logistics. Concurrently, the company is targeting climate-neutral manufacturing by 2025, marking significant milestones in its journey towards climate neutrality.
