Volvo awarded EUR49m to decarbonise engine plant
By Bradley Osborne - 7th July 2025
Volvo's engine plant in Sköde, Sweden
Sweden – AB Volvo of Gothenburg, Sweden has been granted up to EUR49m on a conditional basis from the European Union to reduce carbon emissions from its engine plant in Skövde, employing methods such as energy recovery and storage and artificial intelligence.
Volvo will use the money awarded by the EU’s innovation fund to slash carbon emissions from its manufacturing processes at Skövde by as much as 88%. It aims to do so by introducing the following: furnaces powered by renewably-sourced electricity; replacing propane with hydrogen; installing heat recovery systems for capturing and reusing energy; and an energy management system using artificial intelligence to increase efficiency.
