CarbonSmart Factory: Skövde Plant Approaching Carbon Elimination (SPACE)

ongoing

SPACE aims to decarbonise the Volvo Group Skövde foundry, which is responsible for 10% of the company’s total operational greenhouse gas (GHG) emissions. The project will integrate electrification, hydrogen and advanced industrial Artificial Intelligence (AI) into its manufacturing process, leading to an 88% reduction in GHG emissions compared to the reference scenario. Notable innovations include a 22 megawatts (MW) AI-controlled peak shaving system and an energy storage capacity of 171 MWh achieved using innovative battery systems. As a result, SPACE offers optimised energy utilisation, reliable electricity availability, and improved grid stability. A core element of the project is replacing fossil sources by electricity and hydrogen in the Volvo foundry process: electrical induction furnaces powered by green electricity will substitute coke-powered furnaces and hydrogen will be used instead of propane gas. Additionally, the project will develop a scalable, end-to-end AI-driven platform fully integrated with IoT (Internet of Things) and advanced analytics. A heat recovery system will further enhance efficiency by capturing and redistributing energy, saving emissions annually equivalent to the energy use of 2 000 individual Swedish households. SPACE expects to avoid more than 341 000 tonnes of CO2e emissions over its first ten years of operation. By synchronising energy use with grid capacity, SPACE eases the strain on the energy infrastructure during peak demand; this, in turn, enhances overall grid stability. With its focus on renewable sources integration, the project sets a replicable model for sustainable manufacturing across Volvo Group sites and beyond. Furthermore, the project’s ambitions align with Swedish climate targets, such as achieving zero GHG emissions by 2045 and with broader European goals in the European Green Deal and the ‘Fit for 55’ package. Through its impact on the overall grid stability, SPACE offers societal benefits by facilitating the electrification of other local industries and suppliers. By establishing a sustainable energy supply chain for one of Europe’s largest foundries, the project actively supports the shift away from fossil fuels. Furthermore, the project will directly contribute to society with environmentally friendly products and manufacturing in Europe.