Volvo Cars to cut ocean freight CO2 emissions by 80%

Volvo Cars announced that it will be using renewable fuels to cut the carbon dioxide (CO2) emissions of its ocean freight by 80 percent.

The fuel is Fatty Acid Methyl Esters (FAME) and is based on renewable and sustainable sources, mainly waste cooking oil.

No feedstock related to palm oil or palm oil production is used, Volvo Cars added.

“Renewable fuel is not the end game for removing CO2 from the world’s ocean freight needs. Yet this initiative shows that we can act now and implement solutions that achieve significant results during the wait for long-term technological alternatives,” stated Volvo Cars Chief Operating Officer and Deputy Chief Executive Officer Javier Varela.

“We don’t view this initiative as a competitive advantage. On the contrary, we want to spark other car makers into action as well, to increase demand for carbon-efficient ocean transports, and to establish renewable fuels as a mid-term solution that works. We all have a responsibility to act,” he added.

According to Volvo Cars, FAME fuel will be used for inbound ocean container transports of production material destined for manufacturing plants based in Europe and the Americas. Likewise, the same renewable fuel will be used for all global spare parts distribution by ocean container transports.

Volvo Cars revealed that to achieve the said initiative the Gothenburg-headquartered carmaker has been working closely with Maersk, Kuehne+Nagel, and DB Schenker — the company’s logistics partners.

The said logistics companies, Volvo Cars pointed out, switched to renewable fuel for equivalent energy needed for all container transports done for Volvo Cars since June 1, 2023.

Should renewable fuel become unavailable for a specific shipment, Volvo Cars’ renewable fuel allocation is instead used by the logistics partner for another customer’s route elsewhere, so the overall cut in fossil fuel use is kept on par with actual use in container vessels.

The methodology, Volvo Cars explained, is called mass-balancing, and is third-party audited regularly. The renewable fuel itself is certified and not produced in competition with food crops. That said, the fuel is deemed sustainable in accordance with the EU Renewable Energy Directive.

“We’re continually exploring sustainability opportunities across all aspects of our supply chain, and across our overall business. Our list of initiatives keeps growing as we work towards our ambition of becoming a climate-neutral company by 2040,” commented Varela.

Photos from Volvo Cars

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