Volvo is saving 11,000 tonnes of CO2 per year thanks to a new supply contract that means 100% of the power its Chengdu plant uses is renewable. The plant is its largest in China and is the latest move in its mission to be climate neutral.

With it, Volvo’s global renewable electricity mix is at 80% across its entire manufacturing network. The company aims to be entirely carbon neutral by 2025.

Until now, the energy powering the Chengdu plant had been 70% renewable. This deal solves the last 30%. The plant will have 65% of its energy supplied by hydro-electric dams, with the remainder coming from solar, wind, and other renewable sources.

“Our ambition is to reduce our carbon footprint through concrete, tangible actions,” said Javier Varela, head of industrial operations and quality. “Securing a fully renewable electricity supply for our largest plant in China is a significant milestone and underlines our commitment to taking concrete, meaningful action.”

Volvo has long been moving to make its plants greener. In 2008, all of its European plants moved renewable energy supplies, while in 2018, its Belgian plant took the additional measure of installing 15,000 solar panels on its roof.