Foxconn develops carbon-reduction arm to save energy and promote carbon trading
Foxconn has made its carbon-reduction technology committee an independent company to develop its carbon saving and trading business. The company, Shenzhen Fox-Energy Technology, was created to replace inefficient equipment and explore the business potential of carbon trading.
The manufacturing behemoth, famed for its production of Apple products, has profited significantly from its investments in carbon reduction technologies.
Its Shenzhen division invested less than 50 million yuan (US$8 million) last year, yet managed to reduce Foxconn’s carbon emissions significantly. The company used just over one third of its allocated quota and earned around 10 million yuan (US$1.6 million) from selling the remaining part of its share.
Zhuang Chunyuan, Foxconn’s vice general manager, said the company has reaped financial rewards from carbon trading initiatives. Its Chinese divisions invested 532 million yuan (US$86 million) on 2,455 carbon reduction and energy-saving projects between 2010 and 2013, which reduced 1.07 billion yuan (US$174 million) worth of electricity costs and direct energy-saving benefits. The group's 45-million-yuan (US$7.3 million) energy-saving projects in Shenzhen saved around 200 million watts last year alone.
An auditing team has been set up to monitor the group's energy uses, which are broken down into 11 categories and 177 items, including lighting, air conditioning, water usage and more. As part of the initiative, individual departments could be fined if they significantly fail to meet their carbon reduction targets. The department that beats its target by the greatest amount also stands to be awarded up to 500,000 yuan (US$81,500) a year.
Shenzhen Fox-Energy Technology was formerly the group’s energy-saving technology committee between 2008 and 2013, but has now been assigned to manage and trade the group's carbon quotas as a separate entity.
Foxconn decided to made it an independent company after Chinese government decided to implement policy to promote energy saving and reducing carbon emissions.
The company now has 200 experts responsible for managing and reviewing energy uses and 28 senior carbon auditors. Foxconn has also assigned 800 part-time monitors across its business empires and centralized the management of equipment such as air conditioners, water coolers, air compressors and humidifiers to enhance efficiency, centralize maintenance and reduce energy consumption. Any equipment deemed not up to standard will be replaced.
The new initiative has the potential to reduce outgoings for electricity consumption, while giving the company the opportunity to sell its left over carbon quota.
Chunyuan is confident that now is the right time for the business to truly invest in its energy saving commitment. He has even called on the government to relax controls on the carbon-trading market and implement a more market-oriented environment for investors to profit from the trades.
Chunyuan said the group has been observing the government's carbon trading program and plans to sell its surplus quotas before the program drags down their prices. The company is also seeking to work with banks to explore the possibility of using the quotas to obtain financing.
Lion Electric to Construct US EV Manufacturing Facility
Who is Lion Electric?
Founded in 2008, is an innovative manufacturer of all-electric, zero-emissions, medium and heavy-duty urban vehicles. Lion Electric designs, manufactures, and assembles all components for its vehicles that have unique features specifically adapted to the users and their needs. “We believe that transitioning to all-electric vehicles will lead to major improvements in our society, environment and overall quality of life,” believes Lion Electric.
Lion Electric’s new Illinois Manufacturing Facility
Just two months after announcing plans to construct a battery manufacturing plant and innovation centre in Quebec, Lion Electric is expanding its locations further, selecting Joliet, Illinois for its new manufacturing facility in the US.
The new facility is said to “represent the largest dedicated production site for zero-emission medium and heavy-duty vehicles in the US,” as well as being the company’s biggest footprint in the market. The new facility will give Lion Electric the capacity to meet increasing demand for ‘Made in America’ zero-emission vehicles and bring production closer to customers.
It is expected that the first vehicles off the production line will be in the second half of 2022.
“Lion’s historic investment to bring its largest production facility to Illinois represents not only a win for our communities, but a strong step forward in our work to expand clean energy alternatives and the jobs they bring to our communities,” said Gov. J.B. Pritzker.
“The new Joliet facility will put Illinois at the forefront of a national movement to transition to zero-emission vehicle use, advancing our own goals of putting one million of these cars on the road by 2030. In Illinois, we know that a clean energy economy is about more than just vehicles – it’s about healthier communities and jobs for those who live there. We are excited to welcome Lion to the Land of Lincoln and look forward to their future success here.”
Lion Electric’s Agreement with the Government of Illinois
Over the next three years, Lion Electric will invest a minimum of US$70mn into Illinois. The new facility - totalling 900,000 square feet - is expected to create a minimum of 745 clean energy direct jobs in the next three years, and have an annual production capacity of up to 20,000 all electric buses and trucks.
Scaling electric bus production and decarbonising freight and transportation
As the US moves to electrifying its school buses, the additional production capacity at the facility will help Lion Electric to scale its electric bus production, as well as produce an increased volume of heavy-duty zero-emission trucks to help governments and operators in the US further the decarbonisation of freight and transportation fleets.
“Lion is the leader in electric school buses and has always been dedicated to the U.S. market, and our commitment to be close to our customers is one of the core values we have as a company. This significant expansion into the U.S. market will not only allow us to drastically increase our overall manufacturing capacity of electric trucks and buses but to also better serve our customers, while adding critical clean manufacturing jobs that will form the backbone of the green economy,” said Marc Bedard, CEO and Founder of Lion.
“I also want to acknowledge the crucial role that P33 and Intersect Illinois, civic groups committed to developing developing a long-term roadmap for the local tech industry, played in connecting Lion with the Chicago area’s business and civic community to help further commercial traction, as well as engagement with key workforce and supplier partners.”