Home » Volvo CE signs 20-year solar power deal with South Korea’s LS Electric

Volvo CE signs 20-year solar power deal with South Korea’s LS Electric

by Liam Turner
The Changwon plant in South Korea

Volvo CE (Construction Equipment) has signed a power purchase agreement (PPA) with LS Electric to install solar panels at its Changwon facility in South Korea.

The company has committed to purchasing the renewably generated electricity from the solar panels – which will provide approximately 55GWh of renewable energy per year for 20 years – from 2024 to 2043.

The move will enable Volvo CE in Korea to reduce around 21,000 tonnes of CO2 emissions annually – the equivalent of planting 1.5m pine trees.

This site is expected to be running 100% renewable energy by 2026, as part of the Volvo CE Korean arm’s aim of working toward ensuring a stable supply of renewable energy by establishing its own power grid.

The Changwon plant has so far achieved a saving of 10,616MWh of total energy consumption, as well as having a 20% increase in energy efficiency since 2014.

The facility, Volvo CE’s largest excavator production site, specialises in the manufacturing of demolition equipment and pipelayers, as well as having a Research and Development department.

It has begun to introduce electric forklifts and Automated Guided Vehicles (AGVs) into its operations prior to this investment.

The business has further plans to phase out the usage of kerosene for heating, starting in 2026, and implement a conversion to LNG fuel electric energy by 2028.

‘A carbon-neutral future’

Andrew Knight, head of Excavator Strategy and managing director of Volvo CE Korea, said: “We are dedicated to sustainable growth and establishing pioneering partnerships to help accelerate that growth. 

“With this agreement, Volvo CE aims to transition all electric consumption to renewable energy at the Changwon plant.

“Through this holistic approach, we are leading our industry’s transformation towards a carbon-neutral future.”

Volvo Trucks Korea has also announced a separate partnership with LS Electric to procure solar energy to supply the Dongtan, Gimhae, and Incheon offices in South Korea.

Image credit: The Changwon plant in South Korea. Volvo CE/LS Electric

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