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Škoda Auto on the road to carbon neutrality: Škoenergo power plant transitions to 100% biomass

Škoda Auto continues its journey towards carbon neutrality.

Mlada Boleslav, 13 July 2023 – Škoda Auto continues its journey towards carbon neutrality. The company’s subsidiary, Škoenergo, is an integrated energy supplier for automobile manufacturers and a heating operator in the city of Mlada Boleslav, which has launched an important project to modernize the factory to use 100% biomass. there is Construction will start in 2024 he. By moving to wood chips and plant pellets, energy production becomes completely carbon neutral. With an estimated cost of €141 million, this heating plant upgrade will be one of his largest projects of its kind in the Czech Republic and is expected to be operational within three years. This will contribute to the ambitious environmental targets along the entire value chain, rooted in Škoda’s Next Level Škoda Strategy 2030.

“At Škoda Auto and Ško Energo, we are on track in terms of meeting our ambitious sustainability goals. It represents the most radical modernization of supply.” At the same time, the scope of the planned project is also the largest in the Czech Republic, with an estimated cost of €141 million. More than half of this will be covered by grants from the Czech Republic’s National Environmental Modernization Fund. This impressively demonstrates what we can achieve based on close and trusted cooperation with our stakeholders. – Michael Oeljeklaus, Member of the Board of Management of Škoda Auto for Production and Logistics, Chairman of the Supervisory Board of Škoenergo

“Our existing heating plants already meet the latest standards and employ progressive technology. As part of ŠKO-ENERGO’s strategy, we are committed to ensuring carbon-neutral energy production. The modernization of the power plant at the Škoda car manufacturing base is crucial to the plan: just three years after construction began, both Mlada Boleslav’s manufacturing plant and households will have access to an environmentally friendly heat source. – Tomáš Kubín, ŠKO-ENERGO Managing Director

Up to 290,000 tons of CO2 saved per year by moving away from fossil fuels

The project is scheduled to start in the first half of 2024, and the full refurbishment of the power plant is expected to take place within three years. All boilers use only biomass consisting of 70% wood chips and 30% plant pellets. Biomass is certified according to both European and Czech legislation, emphasizing sustainability throughout the supply chain. Once the transition is complete, annual CO2 savings will reach an estimated 290,000 tons.

Power plants now use a combination of coal and biomass. ŠKO-ENERGO started using biomass for the first time in 2005. Since then, the proportion of environmentally friendly fuels has increased steadily. By 2022, renewable energy sources will account for around 35% of the total energy used at Škoda Auto’s Czech production plant.

Skoda Auto sets ambitious environmental targets

Škoda Auto has tightened its environmental targets and further reduced its carbon footprint. At its plants in the Czech Republic and India, the automaker plans to switch to fully carbon-neutral production by the end of this year. The Vrkrabi plant has already achieved this milestone in 2020.

In terms of its model portfolio, the company plans to significantly accelerate the introduction of new electric vehicles. In the next few years he will launch six fully electric models and by 2027 he commits to investing €5.6 billion in electromobility.

In addition, Škoda Auto is committed to improving sustainability throughout its value chain. This includes the widespread deployment of recycled and recyclable materials and the careful recycling of electric vehicle high-voltage batteries for reuse in stationary installations before creating new products from raw materials.

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