The energy factor:
How the BMW Group is transforming its sites for the future.

Future-proofing an industrial site means re-thinking its energy supply from the ground up. The BMW Group takes a strategic and holistic approach to advancing the transformation of its energy supply, with site-specific solutions, an open mind to different technologies and a clear focus on competitiveness. The new biomass heating plant in Dingolfing, Germany, is just one of many examples showing how this approach is being put into practice. 

For a long time, energy was like the air that we breathe: always there, always available and always in abundant supply for industry to use. And it’s as essential as air too. Today, it is a key determiner of a site’s competitiveness – and of the success of its investments, production security, costs, climate protection and regional value creation. At the BMW Group, the transformation of our energy supply is fundamental to our corporate strategy as well as our long-term resilience.

The objective is clear: to ensure energy remains available, affordable and environmentally responsible across the entire value chain. In 2020 the BMW Group achieved a major milestone in this regard, when it began sourcing all the externally procured energy for production sites worldwide from renewables. This was achieved through a combination of long-term energy contracts and certificates of origin as well as the company’s own energy regeneration. Meanwhile, we continue to reduce our reliance on fossil fuels, particularly natural gas, and now use alternatives such as electricity from wind and solar power, hydrogen, geothermal energy and biomass. The best option or options are chosen for each respective site.

The BMW Group operates more than 30 production sites around the world, each with its own unique energy landscape. In Mexico solar energy is a natural choice, while Leipzig depends more heavily on wind power and hydrogen. In China geothermal energy is used, and in Dingolfing biomass forms a vital part of the overall energy mix. At each location, the BMW Group’s tailored solutions are informed by the specific technological, economic and environmental conditions of the locality.

This approach is underpinned by clear targets. By 2030 the BMW Group aims to reduce Scope 1 and 2 CO₂e emissions from its production facilities by 46 percent compared with 2019 levels. By 2035 it will save at least 60 million tonnes of CO₂e emissions across the entire value chain. Over the longer term, it is pursuing net zero emissions, to be achieved by the year 2050.

For these targets to be effective, concrete projects are needed at each individual production site.

BMW Group Plant Dingolfing offers a clear example of the energy transformation in action – as a tangible solution rather than an abstract goal. Its solution has been engineered specifically for conditions at the plant and to make the best possible use of regional resources. Since 2025 a new nearby biomass heating plant has delivered around half of all the hot process water the facility needs. Fuelled by regional biomass and the BMW Group’s own wood residues, it generates up to 100,000 megawatt-hours of heat annually, reducing CO₂e emissions from Plant Dingolfing by about 20,000 tonnes a year.

At the same time, a photovoltaic system covering some 100,000 square metres of roof space delivers peak output of more than 10 megawatts. Among the most powerful systems of its kind in Germany, it supplies more than 10 gigawatt-hours of renewable electricity to power operations at Dingolfing – directly on the roof of the plant.

This combination of biomass and photovoltaic energy is a clear example of how the BMW Group views energy not in isolation but as part of a resilient, pragmatic and climate-friendly energy system. Central to this approach is the successful collaboration between a variety of stakeholders, from the BMW Group and its energy partners to municipalities and regional actors. Together, we develop solutions that are not only technologically effective but also economically viable, with tangible benefits at the local level.

Efficient energy management and targeted consumption are becoming increasingly important to the competitiveness of industrial sites. As well as ensuring reliable supplies, the challenge is to guarantee that energy used as efficiently as possible at the right time and in the right place.

As digital solutions develop, new opportunities are arising. Energy generation, consumption and storage are now connected and, coupled with data on energy demand, system availability, weather forecasts and market prices, they enable forward-looking decision-making. A practical example of this is the BMW Group’s virtual power plants. Here, data-driven insights are used to control energy flows, reducing costs and CO₂e emissions while easing pressure on the grid and enhancing supply security.

So, rather than being pure consumers, the BMW Group’s production facilities are evolving into proactive participants in the energy systems – or “prosumers”. Its approach demonstrates how industrial energy transformation can work in practice: with an open mind to technologies, site-specific solutions and in close collaboration with municipalities, local utilities, energy partners and regions.

More than 70 percent of the value creation in car production happens outside the factory gates, in the supply chain. This means that renewable energies play an important role among key suppliers and in energy-intensive production processes. The BMW Group’s own progress in the field of energy management provides a good example for others to follow – because what works for us could encourage partners, regions and other projects to take similar steps.

In translating the energy transformation into industrial practice, the BMW Group keeps an open mind to different technologies and regional solutions. At the same time, the aim is to balance competitiveness, environmental protection and responsibility. For us, responsibility extends beyond our factory gates, with energy management and site-specific solutions benefitting much more than just our own operations and sites.

By improving energy efficiency, integrating renewable sources and transforming industrial sites into active players within the energy system, the BMW Group can strengthen the competitiveness of its sites as well as of the region more widely – and with it the entire industrial base that is the foundation of local prosperity.

The BMW Group collaborates with partners, municipalities and people in the region – because the energy transformation is a challenge for us all. To succeed, we must share our experiences and continue enhancing our solutions, with individual projects that deliver tangible benefits for the energy system, industrial bases and society more broadly.