Volvo Cars has become the first global car maker to switch to renewable fuel for its intercontinental ocean freight journeys. By using renewable fuel instead of traditional fossil fuel, the company will immediately reduce its fossil CO2 emissions from ocean freight by 55,000 tonnes per year. This renewable fuel reduces CO2 emissions by at least 84% compared to fossil fuel, which is equivalent to the CO2 emissions of a truck driving around the equator about 1,200 times.
The fuel being used is called Fatty Acid Methyl Esters (FAME), which is derived from renewable and sustainable sources, primarily waste cooking oil. It is important to note that no palm oil or palm oil production feedstock is used in the production of this fuel.
This switch to renewable fuel will apply to inbound ocean container transports of production material for Volvo Cars’ manufacturing plants in Europe and the Americas, as well as spare parts distribution globally by ocean container transports.
Javier Varela, the Chief Operating Officer and Deputy CEO of Volvo Cars, emphasizes that while renewable fuel is not the ultimate solution for reducing CO2 in ocean freight, this initiative demonstrates that immediate action can be taken to achieve significant results while waiting for long-term technological alternatives.
Volvo Cars does not see this initiative as a competitive advantage, but rather hopes to inspire other car makers to take similar action in order to increase the demand for carbon-efficient ocean transports and establish renewable fuels as a viable mid-term solution. The company believes that everyone has a responsibility to act in addressing climate change.
Volvo Cars has collaborated with logistics partners Maersk, Kuehne+Nagel, and DB Schenker on this initiative. These logistics service providers have also switched to renewable fuel for all container transports done for Volvo Cars since 1 June 2023.
When renewable fuel is not available for a specific shipment, the renewable fuel allocation of Volvo Cars is used by the logistics partner for another customer’s route, ensuring that the overall reduction in fossil fuel use remains consistent with actual use in container vessels. This methodology, known as mass-balancing, is regularly audited by third parties. The renewable fuel used is certified and does not compete with food crops, making it sustainable in accordance with the EU Renewable Energy Directive.
Javier Varela states that Volvo Cars is continuously exploring sustainability opportunities in its supply chain and overall business. The company aims to reduce its lifecycle carbon footprint per car by 40% between 2018 and 2025, including a 25% reduction in operational emissions, including logistics. Additionally, Volvo Cars is striving for climate-neutral manufacturing by 2025. These milestones are significant steps towards the company’s ambition of becoming a climate-neutral company by 2040.
1The comparison of fuels considers emissions from the production and use of an equivalent amount of energy, known as Well-to-Wake (WTW) emissions.