Vattenfall has signed a power purchase agreement (PPA) with Volvo Group to sell the Swedish carmaker 50% of the electricity produced by its 140MW Bruzaholm wind farm.
The 10-year deal is part of Volvo Group’s commitment to reducing its carbon dioxide emissions.
Construction of Bruzaholm, located near the city of Eksjö in southern Sweden, will commence in the summer of 2023.
The wind farm will consist of 21 turbines, each 240 metres in height.
It will be ready for commissioning during the autumn of 2025, which is also when the agreement with Volvo Group starts.
President and chief executive of Volvo Group Martin Lundstedt said: “This partnership marks an additional step in continuously reducing the environmental impact from our own industrial activities.
“The agreement signals our commitment to prioritize low-carbon investments, source renewable energy, and take climate action across everything we do.”
Vattenfall’s chief executive and president Anna Borg added: “Today’s agreement is an example of how Volvo Group has chosen to be at the forefront of its electrification and climate work.
“We are pleased to be able to support them on their journey.
“By expanding fossil-free energy sources, collaborating to electrify processes that are currently based on fossil fuels, using our fossil-free electricity and developing charging infrastructure, we can contribute to the phasing out of fossil fuels in the entire transport sector.”