The site is one of only a handful of climate neutral car plants in Europe, Volvo said. An agreement between the firm and a local energy provider ensures all heating supplied to the plant is created from waste incineration, biomass and recycled bio-fuels.
Its electricity supply has been provided by renewable sources since 2008, but the change in heating supply means the entire production process is now climate neutral.
The automaker said the development was a significant step towards its plan of making all Volvo manufacturing sites climate neutral by 2025.
“The Skövde plant achievement is an important addition to our broader efforts in minimising our environmental footprint. We are pleased to be a leader within the automotive industry in the move towards climate-neutral manufacturing,” Volvo Cars marketing and logistics vice president Javier Varela said in a statement.
The Swedish car manufacturer has made a push to move away from fossil fuels as of late, revealing last year that it plans to equip all new cars with an electric motor from 2019 and thereby end the era of Volvos driven solely by internal combustion engines.
It has also invested in autonomous driving technology, with the first self-driving XC90s currently being tested on Swedish roads by a select group of families.