Volvo transitions to renewable fuels for ocean freight

Volvo transitions to renewable fuels for ocean freight

Swedish luxury car company, Volvo Cars, has transitioned to renewable fuels for ocean freight in an attempt to reduce CO2 emissions.

Every year, tens of thousands of containers of production material destined for Volvo Cars factories are carried across the world’s oceans on containerships.

Going forward, Volvo Cars has decided that most of these seafaring journeys will be made with renewable fuel instead of traditional fossil fuel.

The Swedish car company aims to achieve an immediate reduction in fossil CO2 emissions from intercontinental ocean freight by 55,000 tonnes over a year.

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

READ: GEODIS, Volvo turn to e-trucks for freight forwarding

According to Volvo Cars, no feedstock related to palm oil or palm oil production is used.

The car company plans to use renewable fuel for inbound ocean container transports of production material destined for manufacturing plants based in Europe and the Americas, as well as all spare parts distribution made globally by ocean container transports.

Javier Varela, Chief Operating Officer and Deputy CEO at Volvo Cars, said: “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.”

Varela explained that Volvo does not 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,” added Varela. 

Since June of this year, Volvo has commenced working on a plan with its logistics partners, Maersk, Kuehne+Nagel, and DB Schenker, to convert renewable fuel for all container transfers done for Volvo Cars.

In March 2022, Maersk announced the order for 110 additional Volvo VNR Electric Class 8 trucks, increasing its total commitment to 126 trucks.

More recently, Maersk purchased 25 new Volvo FH electric trucks for hinterland container transports in Germany.

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