Volvo Group’s engine manufacturing plant in Skövde, Sweden, has been awarded up to €49 million from the EU Innovation Fund to support its transformative CarbonSmart Factory initiative, dubbed ‘SPACE’.
The SPACE project targets an 88% reduction in CO₂ emissions by reimagining traditional foundry operations. Key enablers include the adoption of electric furnaces powered by green electricity, replacing propane with hydrogen as a fossil-free fuel alternative, and deploying advanced heat recovery and AI-powered energy management systems. These steps collectively aim to position Skövde as a model of decarbonised heavy manufacturing.
Rickard Lundberg, Vice President of Powertrain Production at the Skövde Plant, “This project is a vital part of Volvo Group’s journey towards net-zero emissions. We are electrifying key processes and integrating AI technologies to drive sustainable manufacturing.”
The SPACE initiative will also pilot three innovative energy storage systems to optimise plant energy use and ease pressure on the grid:
- Iron Battery: Stores surplus energy using existing furnaces for peak demand periods
- Hydrogen Battery: Enables seasonal energy storage via green hydrogen
- Water Battery: Utilises hot water reuse to lower heating and melting energy needs
The funding from the EU Innovation Fund follows a pre-study conducted in collaboration with Skövde Energi and AI Sweden, supported by Advanced Digitalization through Vinnova. Once implemented, the SPACE project is expected to make the Skövde facility a benchmark for low-emission industrial production across the automotive sector.
Also Read:
Volvo Group, Daimler Truck Launch Coretura To Drive Digital Transformation Of CVs