Volvo Group’s engine plant in Skövde, Sweden, has secured up to €49 million from the EU Innovation Fund for its CarbonSmart Factory project named SPACE. This initiative is part of Volvo’s strategy to achieve net-zero emissions through clean technology and innovation.
Rickard Lundberg, Vice President of Powertrain Production at the Skövde Plant, stated: “We transition towards sustainable foundry operations by electrifying key processes and integrating AI technologies, reducing CO₂ emissions by 88% from our manufacturing process. This project is a vital part of Volvo Group’s journey towards net-zero emissions.”
The project aims to significantly reduce CO₂ emissions from manufacturing processes at the Skövde Plant. With EU support, it will become a model for decarbonized heavy manufacturing.
Key elements of this transformation include electric furnaces powered by green electricity, hydrogen as a fossil-free fuel alternative replacing propane, advanced heat recovery systems for energy reuse, and AI-powered energy management for optimized energy use.
Additionally, three innovative energy storage solutions will be introduced:
– Iron Battery: Utilizes existing furnaces to store energy for high-demand periods.
– Hydrogen Battery: Employs green hydrogen for seasonal energy storage.
– Water Battery: Reuses hot water to minimize energy needs for heating and melting processes.
These systems aim to balance energy use and production at the plant, enhancing operational flexibility while addressing grid capacity challenges common in large-scale electrification projects.
The Skövde plant has been conditionally granted up to €49 million by the Innovation Fund of the European Commission. A prestudy was conducted with Skövde Energi and AI Sweden, funded by Advanced Digitalization through Vinnova.
For further information on this initiative or related inquiries:
Rickard Lundberg
VP Powertrain Production Skövde Plant
[email protected]
+46 790 62 43 78
Maria Hillerström
Manager Communication Strategy Skövde Plant
[email protected]
+46 735 58 84 97
The views expressed are those of the author(s) only and do not necessarily reflect those of the European Union or CINEA. The European Union or granting authority cannot be held responsible for them.
Volvo Group offers transport and infrastructure solutions globally since its founding in 1927. Headquartered in Gothenburg, Sweden, it employs over 100,000 people worldwide with net sales reaching SEK 527 billion (EUR 46 billion) in 2024. Volvo shares are listed on Nasdaq Stockholm.
