Volvo relies on renewable fuel for overseas logistics

Every year, tens of thousands of containers are transported on massive ships across the world's oceans to supply Volvo's plants and facilities with production materials. By using biofuels, as many CO₂ emissions will be saved in the future as a fully loaded truck would produce driving around the Earth approximately 1,200 times.

Container ships already sustainably on the move

In the future, Volvo will rely on the use of fatty acid methyl ester (abbreviated FAME). These are compounds made from a fatty acid and methanol. The fuel known as biodiesel is derived from renewable and sustainable sources such as used cooking oil. No raw materials associated with palm oil or palm oil production are used.

“Renewable fuels are not the ultimate solution to make global sea freight CO₂ neutral,” says Javier Varela, Chief Operating Officer (COO) and Deputy CEO of Volvo Cars. “However, this measure shows that we are already taking action and implementing solutions that bridge the time period while we wait for long-term alternatives. We do not see the use of biofuels as a competitive advantage. On the contrary, we want to encourage other automakers to take action in order to increase the demand for low-CO₂ overseas transport and establish renewable fuels as a mid-term solution.”

In collaboration with its logistics partners Maersk, Kuehne+Nagel, and DB Schenker, Volvo is working on the Biofuel Initiative. All companies had already switched to renewable fuels for all container transports on behalf of the Swedish-Chinese car manufacturer by June 1, 2023.

Mass Balancing According to EU Law

If renewable fuel is not available for a transport, the logistics partner uses biodiesel for another customer's route. This ensures that the total amount corresponds to the actual consumption and thus the saved CO₂ emissions of all Volvo transports. This method, known as mass balancing, is regularly reviewed by external parties. The fuel itself is certified and is not produced in competition with food crop cultivation. Therefore, it is sustainable according to the EU Renewable Energy Directive.