Skoda Auto: Sko-Energo converts power plant to 100% biomass

Sko-Energo is remodeling its power plant. Construction measures will begin in 2024: The modernized power plant is expected to be operational within three years. By switching to wood chips and phyto-pellets as fuels, energy production will become completely CO2-neutral. With an estimated cost of 141 million euros, the upgrade of the heating plant is one of the largest projects of its kind in the Czech Republic. The project supports the ambitious environmental goals defined in the Next Level Skoda Strategy 2030 along Skoda's entire value chain. Michael Oeljeklaus, Board Member for Production and Logistics at Škoda Auto and Chairman of the Supervisory Board of Sko-Energo, explains:

“At Skoda Auto and Sko-Energo, we are committed to achieving our ambitious sustainability goals. The planned transformation of our Sko-Energo plant represents the most radical modernization of the company's energy supply in the past 25 years. At the same time, the planned project, with estimated costs of 141 million euros, is one of the largest of its kind in the Czech Republic. More than half of this will be covered by grants from the Czech Republic's state environmental modernization fund. This impressively demonstrates what we can achieve with close, trusting cooperation with our stakeholders.”

Tomás Kubín, Managing Director of Sko-Energo, adds:

“Our existing power plant already meets the latest standards and utilizes forward-looking technologies. As part of the ŠKO-ENERGO strategy, we are committed to ensuring CO2-neutral energy production. The modernization of the power plant at the Skoda site is an essential part of this plan. Just three years after construction begins, both the plant and households in Mladá Boleslav will have access to an environmentally friendly heat source.”

Moving away from fossil fuels saves up to 290,000 tons of CO2 annually

The project is set to start in the first half of 2024. Within three years, the plant will be completely renewed. All boilers will then be exclusively fueled with biomass, consisting of 70% wood chips and 30% phyto-pellets. This biomass will be certified under both European and Czech law, highlighting the sustainability of the entire supply chain. After the transformation, up to 290,000 tons of CO2 will be saved annually.

Currently, the plant uses a combination of coal and biomass. Sustainable fuel was first used in 2005. Since then, the share of environmentally friendly fuels has steadily increased. In 2022, around 35% of the total energy supply for Škoda Auto's production facilities in the Czech Republic came from renewable sources.

Skoda Auto has ambitious environmental goals

The environmental goals have been made even more ambitious, further reducing the ecological footprint of the company's activities. By the end of the decade, the plants in the Czech Republic and India are expected to produce completely CO2-neutral. The Vrchlabí site already achieved this milestone in 2020.

On the model side, the company is accelerating the introduction of new electric vehicles. In the coming years, six all-electric models will be launched. Skoda Auto plans to invest a total of 5.6 billion euros in electromobility by 2027. Additionally, Skoda Auto is enhancing sustainability across the entire value chain. This includes increased use of recycled and recyclable materials, as well as the reuse of high-voltage batteries from electric vehicles in stationary systems before they are carefully recycled and new products are made from the raw materials.

What does this mean?

Skoda Auto is also incorporating its power plant to become CO2-neutral. Although something is still being “burned”, the CO2 footprint can be significantly reduced by the conversion – and the company is moving away from coal as an energy source.