Energy Efficient and Climate Neutral production at Volvo Car ...

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Jan 21, 2011 ... Energy Efficient production,Volvo Car Corporation,Mihkel Laks. Page 1 ... Production of S60, S80, V70, XC70 &. XC90. • Contract .... Electricity. Heat. European Union-27 during 2005 ... of 32 countries. Residual heat from all.
Energy Efficient and Climate Neutral production at Volvo Car Corporation!

Leipzig 2011-01-21!

Energy Efficient production,Volvo Car Corporation,Mihkel Laks! Issue date: 2011-01-21, Security Class: Proprietary! Page 1!

Volvo Global Manufacturing

GOTHENBURG/TORSLANDA! 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!

SKÖVDE! SKÖVDE! •  Produces Petrol & Diesel engines! •  2009 Production 378k engines! •  Installed capacity 680k engines! •  Plant size -- 1.18mm sq ft! •  1,500 employees!

FLOBY! FLOBY!

UDDEVALLA / JV!

(Belgium)! GENT (Belgium) !

CHONGQING CHONGQING!(China) / CM

• Connecting rods/Brake discs/ Commercial vehicle hubs! • Plant size -- 0.29mm sq ft! • 450 employees!

•  40% JV with Pininfarina! •  2008 Production of C70 -- 9k units (capacity 20k)! •  700 employees!

•  Production of S40, S60, V50, XC60 & C30! •  2008 Production 184k units! •  Installed capacity 300k units! •  Plant size -- 3.32mm sq ft! •  4,000 employees!

•  Production of S40 & S80 LWB! •  Contract Manufacturing by CFMA!

OLOFSTRÖM!

KÖPING / JV!

•  Body Components! •  Produces for all vehicles! •  Plant size -- 3.44mm sq ft ! •  1,400 employees!

•  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!

Energy Efficient production,Volvo Car Corporation,Mihkel Laks! Issue date: 2011-01-21, Security Class: Proprietary! Page 2!

BANGKOK (Thailand) / CM! •  Production of S60, S80, V70, XC70 & XC90 ! •  Contract manufacturing by AB Volvo!

KUALA LUMPUR (Malaysia) •  Production of S40, S60, S80, V50 & XC90 (plus contract assembly)! •  Plant size -- 0.23mm sq ft! •  300 employees!

All facilities are 
 ISO 9001/14001 certified!

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! Issue date: 2011-01-21, Security Class: Proprietary! Page 3!

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 power
 100 GWh! •  Methane gas
 54 GWh! The all new Volvo V60, introduced 2010.!

Energy Efficient production,Volvo Car Corporation,Mihkel Laks! Issue date: 2011-01-21, Security Class: Proprietary! Page 4!

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! Issue date: 2011-01-21, Security Class: Proprietary! Page 5!

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! Issue date: 2011-01-21, Security Class: Proprietary! Page 6!

Energy Efficient production,Volvo Car Corporation,Mihkel Laks! Issue date: 2011-01-21, Security Class: Proprietary! Page 7!

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! Issue date: 2011-01-21, Security Class: Proprietary! Page 8!

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! Issue date: 2011-01-21, Security Class: Proprietary! Page 9!

District Heating as we see it! The Heat market Geothermal energy

Industrial Waste Heat

Energy from Waste

Bio Fuels

Combined Heat and Power Energy Efficient production,Volvo Car Corporation,Mihkel Laks! Issue date: 2011-01-21, Security Class: Proprietary! Page 10!

Supply of district heating in Sweden From municipal power plant

One million new homes created 1965-1974

Oil reduction in the 80ies

Carbon dioxid reduction in the 90ies

TWh/year

50

40

30

20

10

0 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 Energy Efficient production,Volvo Car Corporation,Mihkel Laks! Issue date: 2011-01-21, Security Class: Proprietary! Page 11!

District Heating is flexible…! Fuel mix 2010

Fuel mix 1981 Other 5% Waste heat 3% Waste incineration 5% Coal 3%

Wood chips 2% Coal 2% Oil 7%

Other 3% Bio mass 28%

Natural gas 6% El 3%

Heat pumps 14%

Oil 84%

Total production 97 PJ

Energy Efficient production,Volvo Car Corporation,Mihkel Laks! Issue date: 2011-01-21, Security Class: Proprietary! Page 12!

Waste heat from CHP 9% Waste heat 9%

Bio oil 3% Peat 5% Waste incineration 11% Bio gas 1%

Total production ca 167 PJ

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!

Energy Efficient production,Volvo Car Corporation,Mihkel Laks! Issue date: 2011-01-21, Security Class: Proprietary! Page 13!

TODAY

•  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

Final end use of net heat and electricity for EU25 + ACC4 + EFTA3 with origin of supply

14! EJ heat! 12!

!

Solar/Wind/Other

!

Combustible Renewables and Waste

!

10!

!

Coal and Coal Products

8!

!

Petroleum Products

6!

Natural Gas

4!

Electricity

2!

Geothermal

0!

Heat

!

!

Industrial sector!

3,4 % of district heat

Residential sector!

8,6 % of district heat

Service sector!

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! Issue date: 2011-01-21, Security Class: Proprietary! Page 15!

!

!

European Union-27 during 2005 Total Primary Energy Supply = 76 EJ EJ

80

Conversion heat losses in the energy transformation sector Conversion heat losses in end use

70

End use inefficiency

60

Combustible Renewables and Waste

50

Solar/Wind/Other

40

Geothermal Hydro

30

Nuclear

20

Natural Gas

10

Petroleum Products Coal and Coal Products

0 Total Primary Total Final Energy Supply Consumption (IEA statistics) (IEA statistics)

Energy Efficient production,Volvo Car Corporation,Mihkel Laks! Issue date: 2011-01-21, Security Class: Proprietary! Page 16!

Total End Use (estimated)

Total Efficient End Use (estimated with 30% inefficiency)

Transportation Electricity Heat

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 Total resources suitable for direct use of geothermal heat

19,2

370 1,8 Industrial CHP

1,6 0,03

European biomass potential

2,3 0,17 0,14

13- 18

0,5

2,0

Energy Efficient production,Volvo Car Corporation,Mihkel Laks! Issue date: 2011-01-21, Security Class: Proprietary! Page 17!

District heat generated 0,03

1,1

Surplus heat from industries

Waste incinerated Non - recycled waste

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! Issue date: 2011-01-21, Security Class: Proprietary! Page 18!

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.!

Energy Efficient production,Volvo Car Corporation,Mihkel Laks! Issue date: 2011-01-21, Security Class: Proprietary! Page 19!