Volvo Car Group and Stora Enso have come together to reduce carbon emissions at Volvo's plant in Belgium by more than 40%.
Volvo's plant is located close to Stora Enso's plant in Langerbrugge in Belgium and the company is planning to install an underground hot water pipeline.
The pipeline will be used to transport compressed water to Volvo Car Gent, which will help the car maker reduce its use of fossil fuels for heating purposes, facilitating decrease in its CO2 emissions.
The Flemish Government provided €2m as an ecology subsidy for the project.
Volvo Car Gent managing director Eric Van Landeghem said, "We are extremely pleased that two major companies in the port area of Ghent have decided to join forces in a project which benefits us both.
"Volvo is able to lower its its CO2emissions and energy costs, which is in line with our efforts to improve our internal efficiency and to promote sustainability, both in the cars we make and in our production processes. The benefits of the investments will be tangible starting in the latter half of 2016 and in the years to come."
Volvo is aiming to reduce its Europe-wide CO2 emissions by 24%.
