Volvo signs major wind power deal as it phases out fossil fuel use

Swedish truck giant Volvo Group has  signed a major new wind supply deal as part of its plans to phase out the use of fossil fuels and to switch its truck and bus offering to be fully electric or at least zero emissions.

Volvo has signed a 10-year power purchase agreement with another Swedish firm Vattenfall to take half of the electricity generated by the planned 140MW Bruzaholm wind farm, which will be built and operating by 2025.

Volvo says the wind deal is an important step in its plans to replace remaining fossil energy sources with renewable low GHG intensive energy sources such as wind, solar and hydropower, and supporting the societal transition to renewable electricity.

“The agreement signals our commitment to prioritize low-carbon investments, source renewable energy, and take climate action across everything we do,” said Martin Lundstedt, president and CEO of Volvo Group.

Volvo Group has set science-based targets of becoming net-zero by 2040 but has already made significant progress on reducing the environmental footprint of its operations.

“The industry’s energy transition is taking place here and now – the key to success is collaboration, no one can tackle the challenge completely on their own,” said Anna Borg, Vattenfall’s CEO and president.

“By expanding fossil-free energy sources, collaborating to electrify processes that are currently based on fossil fuels, using our fossil-free electricity and developing charging infrastructure, we can contribute to the phasing out of fossil fuels in the entire transport sector.”