Production: Net-zero CO2 emissions in Czechia by 2030

› ŠKODA AUTO’s component plant in Vrchlabí has been CO₂-neutral since 2020
› Vrchlabí and Kvasiny plants use up to 90% renewable electricity
› ŠKODA consistently strives for sustainability in raw material extraction, processes and logistics

Mladá Boleslav, 19 September 2022 – ŠKODA AUTO is increasingly using renewable energy to sustainably manufacture vehicles, thereby significantly reducing CO₂ emissions in production. The aim is for all three Czech plants to be operating with net-zero carbon emissions by 2030. The component plant in Vrchlabí had achieved this goal by the end of 2020. In addition to using renewable electricity, the comprehensive measures also include recycling waste, using resource-efficient materials and processes and predominantly green logistics.

“At ŠKODA AUTO, we take a holistic approach to the issue of sustainability, and we are comprehensively and effectively reducing our carbon footprint. In production, we largely rely on electricity from renewable sources and use our own photovoltaic systems or the combined heat and power (CHP) plant in Mladá Boleslav. We are also setting standards with state-of-the-art production facilities, such as our innovative and resource-efficient paint shop in Mladá Boleslav. Our explicit goal is to operate our three Czech plants with CO₂-neutral energy by 2030; in India, we will achieve this target as early as 2025.”

Michael Oeljeklaus, ŠKODA AUTO Board Member for Production and Logistics

The Vrchlabí plant has been CO₂-neutral since the end of 2020. Optimised production processes, consistently lowering energy consumption and switching to renewable energies have made this possible. The share of electricity from renewable sources was around 90% in 2020, which reduced CO₂ emissions from 45,000 to 3,000 tonnes annually. The remaining emissions were offset by compensation measures and corresponding certificates from global climate protection projects. In 2020 alone, effective energy management in Vrchlabí saved more than 2,000 MWh of energy for heating and almost 1,500 MWh of electricity. The use of CO₂-neutral methane from biogas plants instead of natural gas reduced emissions by around 2,700 tonnes. Since the beginning of 2019, all waste from the production process at the site has been either materially or thermally recycled, and since the beginning of 2020, this has also been the case at the other two production sites in the Czech Republic, Mladá Boleslav and Kvasiny.

In partnership with the energy service provider ČEZ, the company will be commissioning the Czech Republic’s third-largest rooftop photovoltaic system at its main plant in Mladá Boleslav in late 2022/early 2023. Almost 6,000 latest-generation solar modules will deliver a nominal output of 2,300 kW, generating more than 2,200 MWh of electricity per year. A smaller system on the roofs of the service centre in Kosmonosy with a peak output of 441 kWp has already been in use since the end of 2019. Along with the ŠKO-ENERGO CHP plant in Mladá Boleslav, it contributes almost 20% of the green energy required at ŠKODA AUTO’s headquarters. More than 30% is renewable electricity from external sources. At the CHP plant, 30% of the fuel is biomass, i.e. renewable raw materials. By the end of the decade, only CO₂-neutral biomass and biogas will be used at the power plant.

The ŠKODA ENYAQ iV is leading the way in vehicle production and is already being delivered to customers with a CO₂-neutral balance sheet. ŠKODA AUTO compensates for currently unavoidable CO₂ emissions during production by purchasing certified carbon credits. The car manufacturer is reducing its CO₂ footprint in vehicle development and production and is also consistently supporting the expansion of renewable energy sources in Europe. For example, the company is involved in constructing a new wind farm in Finland. With a calculated energy volume of 570 GWh per year, the plant will produce enough green energy in the future to supply around 150,000 households with electricity – or power ŠKODA electric vehicles with zero local emissions.

ŠKODA AUTO offers customers sustainable vehicles that are produced in an environmentally friendly ISO-certified production process and excel in terms of energy consumption, material use and recyclability. Thanks to their lightweight construction with high-strength steels and modern composite materials, which are lighter without sacrificing stability, the cars are also more economical to drive. The composites combine, for example, plastics with sugar beet fibres, fibreglass or mineral fillers. Foamed plastics also reduce the vehicle’s weight, which in turn reduces energy consumption and extends the car’s range.

Sustainability also plays a key role at the production plants, in raw material extraction and in individual processes. Recently, the car manufacturer developed an innovative paint with BASF, allowing for one of the four paint layers to be applied much thinner while maintaining the same quality and durability. This enables ŠKODA AUTO to save 720 tonnes of paint a year at its Czech production sites.

The modern paint shop in Mladá Boleslav also sets standards in eco-friendliness; except for the final clear coat, ŠKODA AUTO uses water-soluble coatings, and up to 20% less energy is used in the curing and drying processes alone compared to the past. ŠKODA focuses on avoiding waste from the outset. For example, around 210 grams less solvent and 17% less clear lacquer are used per vehicle in the paint shop than at conventional facilities. In addition, no paint sludge is produced as waste and the exhaust air purification system reduces paint residues by over two kilograms per car body. Since the beginning of 2020, all landfillable waste generated across the various production processes has been recycled materially or thermally.

Smart logistics can also contribute to improving sustainability. In addition to automation and digitalisation, optimising routes and maximising the capacity utilisation of transport vehicles also enhance efficiency. At the Mladá Boleslav plant, ŠKODA AUTO uses two electric trucks for internal transport; these have replaced trucks with combustion engines, cutting CO₂ emissions by 60 tonnes a year. Moreover, the company uses lorries that run on alternative fuels, such as CNG and LNG. Recyclable packaging is used when transporting parts and components.

At the end of a vehicle’s life cycle, mechanical and chemical processes, such as special melting processes for metals, are being developed for external partners and recycling companies to recover valuable resources. A high recycling rate along with the widespread use of already recycled or recyclable materials helps to further reduce emissions.