Swedish renewable energy company Vattenfall has struck an agreement with Volvo Group to supply 230 gigawatt-hours of green energy year annually from its Bruzaholm wind farm in Sweden.
The ten-year offtake agreement between the two companies will begin in the fourth quarter of 2025.
The wind farm will be equipped with 21 wind turbines. Construction works at the site are scheduled to begin in the summer of 2023.
The commissioning of Bruzaholm is planned for the autumn of 2025.
Vattenfall president and CEO Anna Borg stated: “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.
“Today’s agreement is an example of how Volvo Group has chosen to be at the forefront of its electrification and climate work. We are pleased to be able to support them on their journey.
“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.”
Volvo Group intends to use the partnership to achieve net-zero greenhouse gas (GHG) emissions in the value chain by 2040, meeting the conditions set by the Paris Agreement.
As part of its GHG footprint reduction objective, it also plans to replace the use of fossil fuels in its operations with renewable energy sources such as wind, solar and hydropower.
Volvo Group president and CEO Martin Lundstedt stated: “This partnership marks an additional step in continuously reducing the environmental impact from our own industrial activities.
“The agreement signals our commitment to prioritise low-carbon investments, source renewable energy and take climate action across everything we do.”