Gasum to supply Volvo with worry-free, renewable electricity under an 11-year agreement

Gasum and Volvo have entered into an agreement under which Gasum will supply wind power to Volvo’s truck and earthmoving machine sales and servicing operations in Finland, initially during 2024 and then under a 10-year Power Purchase Agreement (PPA) until the end of 2034. The Finnish company Windly acted as the commercial advisor in the PPA negotiations.

Gasum’s PPA is a long-term contract to purchase electricity and protects the buyer from fluctuations in the market price of electricity. PPAs can also enable increased production capacity of renewable energy production when, for example, a wind farm has secured customers to buy the electricity it produces already when making the investment decision.

“We at Volvo Construction Equipment continuously take into account the climate and environment in our operations. We strive to reduce emissions in all our operations and energy sourced from wind turbines supports this goal. We want to set an example and this PPA is the first in our industry in Finland,” says Jenni Lampinen, Director Uptime and Parts at Volvo Construction Equipment Finland Oy.

Service package lets Volvo focus on its core business

Gasum is to supply Volvo’s operations in Finland with the electricity needed in the form of renewable wind power. Besides the PPA, Gasum will additionally supply Volvo with the needed amount of market-price spot electricity.

Gasum will also provide Volvo with a balancing service, which means it deals with optimizing the balance between electricity supply and consumption. In practice, the agreement means that Volvo’s operations in Finland are outsourcing all electricity procurement activities to Gasum’s experts, which means that Volvo can focus on its core business.

“It’s great to be able to expand our long-standing cooperation with Volvo. Renewable wind power has a key role in the transition to a cleaner future. We want to offer our partners the most comprehensive solutions on the energy market to meet their energy needs and to help companies to reach their environmental goals faster,” says Dan Strengell, Commercial Sales Manager at Gasum.

More services to manage consumption are needed

The long-term wind power procurement agreement means Volvo will be able to significantly reduce greenhouse gas emissions in its business.

“Our ambitious sustainability targets apply not only to the trucks we sell, but we also want to reduce emissions across the entire business. The agreement now signed will already bring us very close to carbon neutrality in our own operations in Finland,” says Magnus Björklund, Managing Director, Volvo Finland Ab. 

Under its new strategy, launched in 2022, Gasum will purposefully increase the supply of renewable electricity on the market as well as services related to demand flexibility and consumption management. More and more services are needed as the electricity system increasingly transitions towards renewable energy sources, such as wind and solar power, that fluctuate in terms of availability. Central to Gasum’s strategy is also increasing biogas availability to heavy traffic. Biogas is a cost effective way to cut emissions in heavy traffic already today.

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