Vattenfall deal: an agreement to purchase electricity for transport
In a unique bilateral energy arrangement for the transportation industry, Volvo Car AB has inked an agreement to purchase wind energy from the renewable energy company Vattenfall AB.
Volvo aims to achieve zero carbon emissions by 2040.
By the statement, the Swedish automaker would purchase 225 gigawatt-hours per year, or 50% renewable electricity, over ten years beginning in the fourth quarter of 2025.
Although the EU has established tight regulations for the phase-out of new combustion engine vehicles by 2035, these regulations do not address emissions from automobiles.
To assist in decarbonizing the electricity system, the bloc also hopes to implement the power purchase agreement through its power market framework.