As an energy-intensive operation, we continually work to develop our facilities and processes to increase energy efficiency and the reduce the emissions associated with the energy we use in appropriate ways. Our processes are mainly electrified, which is a competitive advantage rather than using some kind of liquified fossil gas as energy carriers for heating in the processes. We work with energy efficiency and transition to electricity that comes from fossil-free production at all sites, based on the local conditions. Energy sourcing options for our sites vary based on their location and the year that they were built, so each site is on a journey of their own to reach their respective targets.
At Suzuki Garphyttan, climate action means that we are aware of our carbon footprint and are working to minimize it to ultimately achieve net zero emissions in our operations. Our main governing document linked to climate change is our Environmental Policy. It describes how we as a company deal with limiting climate change and other environmental issues that are deemed to be significant. The policy applies to our operations at all sites and get specified in the form of targets both at the global level and at site level. The policy also covers our efforts to influence and collaborate with other actors in our value chain, although it does not cover their operations. We collaborate with our suppliers and, if there are alternatives, we prioritize working with those who actively work to reduce the products' climate impact and can provide emission data for their products.
The sites work locally with their processes so that our global footprint can be reduced. The most important factor in reducing our carbon footprint has been to increase our use of fossil-free energy. We reduce the company's dependence on fossil fuels in different ways. During the year we have replaced an oil boiler with geothermal heating. We use fossil-free electricity at several facilities and have solar panels installed at our sites in Suzhou, China and San Jose Iturbide, Mexico. The electricity generation accounted for approximately 4 percent in Suzhou and 2 percent in San Jose Iturbide of the total electricity consumption of the sites. The solar panels in San Jose Iturbide were recently installed and were only in operation for approximately 3 months during the year, if it would be operational the full year the estimation is that the proportion of total consumption would be approximately 11 percent. According to the local grid emission factors of 594 respective 438 kg CO2e/MWh the production reduced the GHG emissions in 2024 by approximately 674 tons.
Another contributing factor is that we are gradually transitioning to production methods that use raw materials more efficiently. The sites work locally with their processes so that our global footprint can be diminished. Also, we prioritize low-emission transport options for incoming materials and outgoing products whenever possible. We request and evaluate emission data from transporters to make informed decisions when selecting transporters and transportation methods.
Calculation of GHG emissions
We have updated our target on greenhouse gas emissions. Now it is set according to the division of emissions in scope 1-3 and currently we only have a target for scope 1 & 2. The target is to reduce the emissions in scope 1 & 2 to 134 kg CO2e/ton wire by 2030, a reduction of 83 % in 2030 compared to the base year 2020. Our target is aligned with the Paris Agreement and the ambition to limit global warming to 1.5°C. Based on the company's planned production volumes during the last year of the current strategy, this corresponds to absolute emissions of 16 000 tons of CO2e in 2030. Absolute emissions are to be reduced by 59 % even though the quantities produced are significantly higher in the strategy than in the base year 2020. The current strategy extends to 2028, but the production volumes have been assumed to be the same in 2030 as in 2028.
We have an ongoing mapping of the actions and changes required to phase out fossil fuels and reduce greenhouse gas emissions in scope 1 & 2. The company has developed an overarching plan where these actions are grouped into key categories along with their expected quantitative contributions to emission reductions by 2030. While the mapping is still in progress, the specific pathways to achieve emission reductions will vary across our sites. Each site will present its planned action plans, which will contribute to the overall strategy. There remains a gap to meet our target, for which no specific actions have yet been identified. Closing this gap is a priority, and efforts to address it are ongoing. We have not set any targets linked to scope 3 but are in the process of collecting baseline data that the target will be based on. For Scope 3 emissions, our influence is more limited compared to our own operations. Expected reductions in Scope 3 emissions primarily rely on the forward-looking commitments and plans of other actors in the value chain. The assessment of these reductions is mainly based on what these stakeholders report or communicate regarding their own plans and initiatives.