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Energy Efficient production,Volvo Car Corporation,Mihkel Laks!
Page 1!Issue date: 2011-01-21, Security Class: Proprietary!
Energy Efficient and Climate Neutral production at Volvo Car Corporation!
Leipzig 2011-01-21!
Energy Efficient production,Volvo Car Corporation,Mihkel Laks!
Page 2!Issue date: 2011-01-21, Security Class: Proprietary!
CHONGQING!• Production of S40 & S80 LWB!• Contract Manufacturing by CFMA!
CHONGQING (China) / CM
• Production of S40, S60, S80, V50 & XC90 (plus contract assembly)!
• Plant size -- 0.23mm sq ft!• 300 employees!
KUALA LUMPUR (Malaysia)
SKÖVDE!• Produces Petrol & Diesel engines!• 2009 Production 378k engines!• Installed capacity 680k engines!• Plant size -- 1.18mm sq ft!• 1,500 employees!
SKÖVDE!
• Production of S60, S80, V70, XC70 & XC90 !
• Contract manufacturing by AB Volvo!
BANGKOK (Thailand) / CM!
GENT (Belgium)!• Production of S40, S60, V50, XC60 &
C30!• 2008 Production 184k units!• Installed capacity 300k units!• Plant size -- 3.32mm sq ft!• 4,000 employees!
GENT (Belgium)!FLOBY!• Connecting rods/Brake discs/
Commercial vehicle hubs!• Plant size -- 0.29mm sq ft!• 450 employees!
FLOBY!
OLOFSTRÖM!• Body Components!• Produces for all vehicles!• Plant size -- 3.44mm sq ft !• 1,400 employees!
OLOFSTRÖM!
• 40% JV with Pininfarina!• 2008 Production of C70 -- 9k units
(capacity 20k)!• 700 employees!
UDDEVALLA / JV!
• 40% JV with Getrag!• Production of Power Take-Off and Rear
Wheel Drive Units and Chassis Components !
• Plant size -- 0.90mm sq ft!• 700 employees!
KÖPING / JV!
All facilities are ISO 9001/14001 certified!
Volvo Global Manufacturing
GÖTEBORG!• Group Headquarters, Engineering and
Safety Design Center!• Production of S80, V70, XC70 & XC90!• 2009 Production 103k units!• Installed capacity 270k units!• Plant size -- 3.55mm sq ft!• 2,800 Torslanda employees!
GOTHENBURG/TORSLANDA!
Energy Efficient production,Volvo Car Corporation,Mihkel Laks!
Page 3!Issue date: 2011-01-21, Security Class: Proprietary!
District heating at the Volvo Cars Torslanda plant since 1982!Refinery – provider of spill heat !
The car plant.!
Boiler house, which is supplied with heat from refinery, municipal district heating and natural gas!
Energy Efficient production,Volvo Car Corporation,Mihkel Laks!
Page 4!Issue date: 2011-01-21, Security Class: Proprietary!
Volvo Cars Torslanda!
Annual production:!150,000-190,000 cars!
Annual energy need:!238 GWh (forecast 2011)!
Energy mix:!• District heating
84 GWh!• Electricity from
Hydro power100 GWh!
• Methane gas54 GWh!
The all new Volvo V60, introduced 2010.!
Energy Efficient production,Volvo Car Corporation,Mihkel Laks!
Page 5!Issue date: 2011-01-21, Security Class: Proprietary!
Energy efficiency!
• Volvo Car Corporation (VCC) has reduced the total use of energy with more than 30% in the last 5 years.
• This has been done by systematic work and only minor investments.
• Energy mapping, measuring systems, local energy ”hunters” and dedicated employees + lots of information are the key factors.
• Ventilation – heating/cooling and lighting are major energy consumers.
• At Torslanda: nonproduction facilities are using more energy than the production plant.
• VCC has the goal to reduce total use of energy with >5%/year.!
Energy Efficient production,Volvo Car Corporation,Mihkel Laks!
Page 6!Issue date: 2011-01-21, Security Class: Proprietary!
Climate neutral production!
• All electricity used att VCC (Europe) is bought as certified hydropower.
• Most of the heating is done with district heating.
• Remaining to become climate neutral is to replace NG with biogas – lack of supply today.
• Ghent plant has 3 windmills operating
• Torslanda plant heated with spill heat since 1982
• Floby plant heated with biomass
• Skövde plant heated with spill heat from waste incineration!
Energy Efficient production,Volvo Car Corporation,Mihkel Laks!
Page 7!Issue date: 2011-01-21, Security Class: Proprietary!
Energy Efficient production,Volvo Car Corporation,Mihkel Laks!
Page 8!Issue date: 2011-01-21, Security Class: Proprietary!
The idea of District Heating!
District Heating and Cooling creates efficient and environmentally sound energy solutions that utilize resources that otherwise would have been lost, and offers the customer simple, safe and comfortable heating and cooling.!
Energy Efficient production,Volvo Car Corporation,Mihkel Laks!
Page 9!Issue date: 2011-01-21, Security Class: Proprietary!
District Heating in Sweden!
• 9 million inhabitants!• 50 TWh district heating!• 48% of total heat market!• Present in every community with more than 10 000
inhabitants !• Still growing!• Turnover € 2.6 billion!• Competing on a non regulated heat market!
Energy Efficient production,Volvo Car Corporation,Mihkel Laks!
Page 10!Issue date: 2011-01-21, Security Class: Proprietary!
District Heating as we see it!The Heat market
Combined Heat and Power
Bio Fuels Energy from Waste
Industrial Waste Heat
Geothermal energy
Energy Efficient production,Volvo Car Corporation,Mihkel Laks!
Page 11!Issue date: 2011-01-21, Security Class: Proprietary!
Supply of district heating in Sweden
0
10
20
30
40
50
1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
TWh/year
From municipal power plant
One million new homes created 1965-1974
Oil reduction in the 80ies
Carbon dioxid reduction in the 90ies
Energy Efficient production,Volvo Car Corporation,Mihkel Laks!
Page 12!Issue date: 2011-01-21, Security Class: Proprietary!
District Heating is flexible…!
Fuel mix 1981 Other 5%
Coal 3%
Waste heat 3% Waste incineration 5%
Oil 84%
Total production 97 PJ
Fuel mix 2010
Oil 7%
Peat 5%
Bio oil 3%
Waste incineration 11%
Waste heat 9% Bio gas 1%
Waste heat from CHP 9%
Heat pumps 14%
El 3%
Natural gas 6% Bio mass 28%
Other 3% Coal 2%
Total production ca 167 PJ
Wood chips 2%
Energy Efficient production,Volvo Car Corporation,Mihkel Laks!
Page 13!Issue date: 2011-01-21, Security Class: Proprietary!
District Heating since 1981 ! !!
• Growth 75%, equals the heating of 1 million family houses !
• Reduced CO2 emissions with about 11 million tonnes, or 20 % of present total emissions in Sweden!
• Without any large subsidies (successful adoption to high CO2 taxation)!
• Satisfied customers and stabile prices!
• In 2010, 90 % of Göteborg’s apartment blocks have district heating
• Carbon dioxide emissions have fallen significantly
• District heating is financially advantageous
District heating contributes to a sustainable society for Göteborg
TODAY
Energy Efficient production,Volvo Car Corporation,Mihkel Laks!
Page 15!Issue date: 2011-01-21, Security Class: Proprietary!
Final end use of net heat and electricity for EU25 + ACC4 + EFTA3 with origin of supply
0!
2!
4!
6!
8!
10!
12!
14!
Industrial sector! Residential sector! Service sector!
EJ heat! Solar/Wind/Other!Combustible Renewables!and Waste!Coal and Coal Products!Petroleum Products!Natural Gas!Electricity!Geothermal!Heat!
3,4 % of district heat 8,6 % of district heat 6,3 % of district heat
In total, the market share was 6,0 % for district heat when electricity w as included. Otherwise the market share was 8,9 %.
Energy Efficient production,Volvo Car Corporation,Mihkel Laks!
Page 16!Issue date: 2011-01-21, Security Class: Proprietary!
0
10
20
30
40
50
60
70
80
Total Primary Energy Supply (IEA statistics)
Total Final Consumption
(IEA statistics)
Total End Use (estimated)
Total Efficient End Use
(estimated with 30% inefficiency)
EJ Conversion heat losses in the energy transformation sector Conversion heat losses in end use End use inefficiency Combustible Renewables and Waste Solar/Wind/Other Geothermal Hydro Nuclear Natural Gas Petroleum Products Coal and Coal Products Transportation Electricity Heat
European Union-27 during 2005 Total Primary Energy Supply = 76 EJ
Energy Efficient production,Volvo Car Corporation,Mihkel Laks!
Page 17!Issue date: 2011-01-21, Security Class: Proprietary!
Available sources and corresponding heat flows during 2003 in EJ/year for the target area of 32 countries!
Residual heat from all thermal power generation
19,2
Total resources suitable for direct use of geotherm al heat
1,6 0,03
370
District heat generated Surplus heat from industries
1,1 0,03
2,0
European b iomass potential
0,17 0,14
Waste incinerated
2,3
0,5 Non - recycled waste
13 - 18
1,8
Industrial CHP
Energy Efficient production,Volvo Car Corporation,Mihkel Laks!
Page 18!Issue date: 2011-01-21, Security Class: Proprietary!
Why is there so much district heating in Sweden and so little in Europe?!• Independent local administrative organization gives priority to local
infrastructure.
• Warm housing is a prerequisite for survival during cold winters.
• Swedish politicians were foresighted in the oil and climate matter during the 80ies and 90ies. A huge market experiment has been carried through during past 30 years.
• Building of systems is a Swedish engineering tradition.!
Energy Efficient production,Volvo Car Corporation,Mihkel Laks!
Page 19!Issue date: 2011-01-21, Security Class: Proprietary!
The Swedish experience!
It works:!
“Think Globally, !Invest Locally: !Recycle Energy” !
Under the right market conditions – where harming the environment has a price – district heating investments is a good business.!
