Polestar (Nasdaq: PSNY) is advancing its efforts to reduce supply chain emissions by integrating renewable fuels on ocean freight routes, which represent about 75% of its total transportation emissions.
The Vehicle Processing Center (VPC) in Belgium, which prepares vehicles for delivery to European customers, now operates on 100% renewable electricity, including charging vehicles with renewable power.
As production of Polestar 3 and Polestar 4 ramps up, renewable fuel will initially be used for around 65% of outbound ocean freight from Asia to the VPC in Zeebrugge, Belgium. Renewable fuels will also be used for freight from North America later this year as Polestar 3 production expands to South Carolina. Utilizing B30 Biofuel, which contains 30% Fatty Acid Methyl Esters (FAME), emissions from these shipping routes can be reduced by approximately 20-25% compared to conventional Sulphur fuel oils.
Polestar has also decarbonized inter-continental inbound ocean freight for production materials and spare parts distribution, now running on 100% FAME fuel, cutting greenhouse gas emissions by 84% compared to fossil fuels. This FAME fuel is derived from renewable sources, including waste cooking oil, and excludes any palm oil-related feedstock.
Jonas Engström, Head of Operations at Polestar, stated, “This is an important step in Polestar’s goal to reach climate neutrality by 2040. Achieving true climate neutrality means eliminating all greenhouse gas emissions across our operations and the entire lifecycle of our cars, including supply chain emissions. With our expanding model line-up and manufacturing footprint, sustainable logistics solutions are crucial.”
Polestar’s 2023 Sustainability Report showed a 9% reduction in greenhouse gas emissions per sold car compared to 2022, demonstrating that growth can be achieved without increasing emissions.
