Polestar Enhances Sustainability with Renewable Fuels in Ocean Freight and Operations
GOTHENBURG, SWEDEN – 5 June 2024. Polestar (Nasdaq: PSNY) is advancing its commitment to reducing supply chain emissions by integrating renewable fuels into its ocean freight routes, which are responsible for approximately 75% of the company’s total transportation emissions.
A significant milestone has been achieved as Polestar’s Vehicle Processing Center (VPC) in Belgium now operates entirely on renewable electricity. This VPC is crucial for the final preparation of vehicles destined for European customers, ensuring they are charged with renewable energy before delivery.
With the ramp-up in production of the Polestar 3 and Polestar 4, renewable fuels will initially be utilized for around 65% of outbound ocean freight transporting vehicles from Asia to Polestar’s VPC in Zeebrugge, Belgium. Additionally, Polestar plans to extend the use of renewable fuels to freight routes from North America in the latter half of the year, coinciding with the expansion of Polestar 3 production in South Carolina. The adoption of B30 Biofuel, which includes 30% Fatty Acid Methyl Esters (FAME), is projected to reduce emissions on these shipping routes by approximately 20-25% compared to traditional Sulphur fuel oils.
Polestar is also decarbonizing its inter-continental inbound ocean freight for production materials and spare parts distribution, now powered by 100% FAME fuel. This shift has slashed greenhouse gas emissions by 84% relative to fossil fuels. The FAME fuel is derived from renewable sources, such as waste cooking oil, and does not involve feedstock from palm oil or related production.
Jonas Engström, Head of Operations at Polestar, emphasized the importance of this initiative: “This is an important step in Polestar’s goal to reach climate neutrality by 2040. Becoming truly climate neutral means eliminating all greenhouse gas emissions across our operations, and all phases of our cars’ life cycles, including emissions from the supply chain. As we enter an accelerating phase of growth with our model line-up and manufacturing footprint expanding, there is an extra emphasis on the need for sustainable logistics solutions.”
Polestar’s recently released Sustainability Report for 2023 highlighted a 9% reduction in greenhouse gas emissions per sold car compared to 2022, demonstrating the feasibility of decoupling business growth from increased emissions.
