Continental Phases Out Coal and Heavy Fuel Oil in Tire Production

Continental completes coal and oil phase-out across all tire factories

Continental has removed coal and heavy fuel oil from every one of its 19 tire production sites worldwide. The German manufacturer completed the transition in January 2026, switching to biomass, biogas, renewable electricity, liquefied petroleum gas, and natural gas for the steam generation and heating systems that power tire production.

The change affects facilities that previously relied on fossil fuels for the high-temperature processes essential to tire manufacturing. Consequently, the company has cut around 180,000 metric tons of carbon dioxide emissions from tire production over the past four years. Furthermore, greenhouse gas intensity dropped by more than 10% in 2025 compared to 2024, representing roughly 70% reduction against 2019 levels.

This marks a significant shift for an industry where thermal energy remains critical. Tire vulcanization requires sustained heat to transform raw rubber into its final elastic form. Therefore, any fuel transition must maintain reliable output while meeting increasingly strict emissions standards.

Seven plants previously depended on coal or heavy fuel oil

In the early 2020s, seven of Continental’s 19 production facilities used coal or heavy fuel oil as their primary thermal energy source. These sites operated mainly in regions where gas infrastructure or renewable electricity access remained limited. As a result, the company faced both operational constraints and rising pressure from customers and regulators to reduce Scope 1 and 2 emissions.

Continental began addressing this challenge through its Vision 2030 sustainability strategy. The plan emphasizes energy-efficient, low-emission production and sets specific targets for decarbonizing manufacturing operations. Notably, the company committed to sourcing 100% of purchased electricity from renewable sources by late 2020, verified through RE100 energy attribute certificates.

The company also expanded onsite renewable generation. By 2024, Continental had installed 52.6 megawatts of peak photovoltaic capacity across its facilities. These solar installations now produce up to 37.7 gigawatt-hours annually, directly offsetting grid electricity consumption and supporting electrification projects like the steam boiler system in Portugal.

Lousado plant achieves carbon-neutral tire production using electric boiler

Continental’s Lousado facility in Portugal became the first tire plant to achieve carbon-neutral production in 2024. The site installed a fully electric steam boiler powered by onsite solar arrays and grid renewable electricity. This configuration eliminates all direct combustion emissions from steam generation while maintaining the thermal output required for large-scale tire manufacturing.

Dr. Bernhard Trilken, Head of Production and Logistics at Continental Tires, stated: “In Lousado, we are showing that even very large tire plants can produce carbon-neutrally. The availability of renewable energy sources at competitive prices is crucial for this.” The success of the Lousado model demonstrates that electric heating can replace fossil fuel boilers in energy-intensive manufacturing, provided renewable electricity costs remain viable.

However, replicating this approach depends heavily on local energy markets. Regions with expensive or carbon-intensive electricity may find biomass or biogas more practical in the near term. Continental has therefore adopted site-specific solutions tailored to each facility’s energy landscape and infrastructure constraints.

Czech and Sri Lankan sites transition to biomass and biogas systems

Continental’s Otrokovice plant in the Czech Republic shifted from coal to a combination of biomass and natural gas for steam production. The company worked with local energy suppliers to develop a fuel mix that meets production demands while reducing emissions. Moreover, the transition created a secondary benefit: the plant now supplies cleaner district heating to surrounding communities, replacing coal-based systems previously used for residential and commercial heating.

In Sri Lanka, Continental’s Kalutara facility installed a second biomass boiler in 2025 to fully eliminate heavy fuel oil. The site now operates entirely on renewable biomass fuel sourced locally, reducing both carbon emissions and exposure to volatile oil prices. This change illustrates how facilities in different regulatory and infrastructure environments can still achieve meaningful decarbonization through locally appropriate technologies.

These site-specific adaptations reflect Continental’s broader approach. Rather than mandating a single solution across all facilities, the company assessed each plant’s energy options and designed custom transitions. As a result, the fuel mix varies by location but delivers consistent emissions reductions across the global production network.

Production efficiency improvements reduce water and energy use per tire

Beyond fuel switching, Continental has improved resource efficiency across its manufacturing operations. The company now uses 55% less water and 17% less energy per metric ton of tires compared to industry averages. Between 2020 and 2025, Continental reduced water consumption by more than 10% per metric ton produced, saving 197 million liters in total.

The company targets an additional 20% reduction in energy use per tire by 2030. Achieving this goal requires ongoing investment in process optimization, equipment upgrades, and automation systems that minimize waste and improve yield rates. These efficiency gains complement the fuel transition by reducing the total thermal energy demand that must be met through renewable or low-carbon sources.

Henning Mühlenstedt, Head of Future Technologies and Sustainable Infrastructure at Continental Tires, noted: “We have significantly reduced our production-related carbon dioxide emissions, thanks to continuous investments in electrification and changing the energy sources used for heat generation at our plants worldwide.” The combination of fuel switching and efficiency improvements positions Continental to meet increasingly stringent supply chain emissions requirements.

What this means for UK manufacturers and supply chain buyers

Continental’s transition demonstrates that large-scale industrial decarbonization is technically and economically feasible in energy-intensive sectors. For UK manufacturers facing similar challenges, several lessons emerge. First, renewable electricity access and pricing fundamentally determine which decarbonization pathways remain viable. Electric boilers work well where renewable electricity is abundant and affordable, but biomass or biogas may prove more practical in regions with constrained grids or high electricity costs.

Second, site-specific solutions deliver better results than one-size-fits-all mandates. Continental’s varied approach across 19 facilities shows that companies can achieve consistent emissions reductions while accommodating local infrastructure constraints and energy market conditions. UK manufacturers should therefore assess each facility individually rather than assuming a single technology will work everywhere.

Third, buyer pressure increasingly drives supplier decarbonization. Continental’s investment responds partly to customer requirements for lower-emission tires, particularly in the electric vehicle sector where lifecycle emissions receive greater scrutiny. UK businesses procuring materials or components should expect suppliers to face similar expectations. Consequently, procurement teams need clear visibility into supplier emissions and credible transition plans.

For businesses selling into automotive or industrial supply chains, this shift creates both compliance requirements and commercial opportunities. Companies that can demonstrate verified emissions reductions may gain preferred supplier status or access to contracts requiring low-carbon products. Conversely, suppliers unable to reduce Scope 1 and 2 emissions risk losing business as buyers tighten supply chain requirements.

The timing matters for regulatory compliance as well. EU carbon border adjustment mechanisms will progressively price embodied emissions in imported goods. UK manufacturers exporting to Europe need comparable decarbonization trajectories to remain competitive. Additionally, UK climate disclosure rules under the Taskforce on Climate-related Financial Disclosures now require many mid-sized companies to report Scope 1, 2, and 3 emissions. Supply chain emissions form a substantial part of most Scope 3 calculations, creating pressure throughout procurement networks.

Continental cuts 180,000 tons of carbon dioxide over four years

Continental achieved several quantifiable milestones through this transition. The company eliminated approximately 180,000 metric tons of carbon dioxide emissions from tire production between 2022 and 2026. Greenhouse gas intensity per tire fell by more than 10% in 2025 alone, building on sustained reductions that total roughly 70% compared to 2019 baseline levels.

All 19 tire plants now source 100% of purchased electricity from renewable sources, verified through energy attribute certificates. Onsite renewable generation reached 52.6 megawatts of peak capacity in 2024, producing up to 37.7 gigawatt-hours annually. This combination of renewable procurement and onsite generation provides the foundation for electrified heating systems while reducing exposure to fossil fuel price volatility.

Continental also increased the proportion of renewable and recycled materials in tire production. The company used 26% sustainable materials in 2024 and targets more than 40% by 2030. This broader material strategy addresses Scope 3 emissions beyond manufacturing, tackling the embodied carbon in raw materials and end-of-life tire management.

Water efficiency improvements saved 197 million liters between 2020 and 2025, representing more than 10% reduction per metric ton of tires produced. These gains reflect process optimizations that reduce both resource consumption and the energy required for water treatment and heating.

CDP awarded Continental an “A minus” rating for climate action, recognizing the company’s emissions reductions and transition planning. This external validation carries weight with investors and corporate buyers evaluating supplier sustainability performance. For UK businesses, similar third-party verification increasingly becomes necessary to substantiate emissions claims and maintain supply chain access.

Key facts about Continental’s fuel transition

• Continental completed the phase-out of coal and heavy fuel oil across all 19 tire production facilities in January 2026.
• The company now uses biomass, biogas, renewable electricity, liquefied petroleum gas, and natural gas for steam generation and heating.
• Total carbon dioxide savings from tire production reached approximately 180,000 metric tons over the past four years.
• Greenhouse gas intensity dropped by more than 10% in 2025 compared to 2024, representing roughly 70% reduction against 2019 levels.
• All purchased electricity has come from renewable sources since late 2020, verified through RE100 energy attribute certificates.
• Onsite photovoltaic capacity reached 52.6 megawatts peak in 2024, generating up to 37.7 gigawatt-hours annually.
• Continental uses 55% less water and 17% less energy per metric ton of tires than industry averages, targeting an additional 20% energy reduction by 2030.

Implications for industrial decarbonization and supply chain emissions

Continental’s achievement shows that thermal energy transitions in heavy manufacturing are both technically feasible and commercially viable under the right conditions. The success depends critically on renewable energy availability and pricing. Electric boilers require abundant low-cost renewable electricity, while biomass and biogas suit locations where electricity remains expensive or carbon-intensive.

For UK manufacturers, this underscores the importance of energy strategy in decarbonization planning. Companies need clear visibility into their energy costs, grid carbon intensity, and available renewable procurement options. In some cases, onsite generation may prove essential to achieving cost-effective electrification. In others, negotiated biomass or biogas contracts may deliver faster emissions reductions at lower capital cost.

Supply chain implications extend beyond direct emissions. Automotive manufacturers and other large buyers increasingly require suppliers to report and reduce Scope 1 and 2 emissions. Continental’s transition responds partly to customer demands for lower-emission tires, particularly in electric vehicle applications where embodied emissions significantly affect whole-life carbon footprints. UK businesses supplying automotive, construction, or industrial sectors should anticipate similar requirements flowing down through procurement contracts.

The shift also affects competitive positioning. Companies that decarbonize production processes can market lower-emission products, potentially commanding price premiums or winning contracts with sustainability criteria. This commercial dynamic will intensify as carbon pricing mechanisms expand and corporate net zero commitments require supply chain emissions reductions. Businesses that delay decarbonization risk losing market access or bearing higher compliance costs later.

However, challenges remain. Biomass sustainability requires careful sourcing to avoid deforestation or food crop competition. Biogas availability depends on local waste streams and infrastructure. Natural gas, while cleaner than coal or oil, still produces carbon emissions and exposes companies to fossil fuel price volatility. Therefore, even companies achieving significant emissions reductions must continue investing in lower-carbon alternatives and efficiency improvements.

Continental’s broader material strategy illustrates this point. The company aims to source more than 40% of tire materials from renewable or recycled sources by 2030, up from 26% in 2024. This tackles Scope 3 emissions embedded in raw materials, which typically exceed manufacturing emissions in most supply chains. UK businesses should similarly address both operational and supply chain emissions to meet stakeholder expectations and regulatory requirements.

What UK businesses should consider for thermal energy transitions

UK manufacturers evaluating similar transitions should start with comprehensive energy audits covering all thermal processes. This baseline identifies which operations require high-temperature heat, where fuel switching is technically feasible, and what infrastructure upgrades are necessary. Many companies discover that different production lines require different solutions depending on temperature requirements and duty cycles.

Next, assess local energy options thoroughly. Renewable electricity costs vary significantly by region and connection type. Industrial-scale heat pumps may suit some facilities, while others need biomass boilers or hydrogen-ready equipment. Some sites may benefit from onsite generation to reduce electricity costs and improve grid independence. Others should negotiate power purchase agreements or explore private wire arrangements with nearby renewable generators.

Consider the regulatory compliance requirements for carbon reporting and emissions reductions that apply to your sector. Public sector suppliers must meet PPN 06/21 requirements for carbon reduction plans. Companies above certain thresholds face mandatory climate disclosure under TCFD-aligned rules. EU exporters need to prepare for carbon border adjustments. Understanding these obligations helps prioritize decarbonization investments and avoid compliance penalties.

Engage with supply chain partners early. If you’re a buyer, communicate emissions expectations clearly and work with suppliers on credible transition plans. If you’re a supplier, demonstrate progress through verified data and third-party validation. CDP reporting, Science Based Targets, or ISO 14064 verification all provide credible frameworks for substantiating emissions reductions and building buyer confidence.

Plan for capital investment cycles carefully. Thermal energy transitions often require significant upfront spending on new boilers, electrical infrastructure, or fuel handling systems. However, operational cost savings from improved efficiency and fuel switching can deliver attractive payback periods. Government support through industrial energy transformation grants or Contracts for Difference for industrial heat may improve project economics for eligible businesses.

Finally, recognize that this is an ongoing process rather than a single project. Continental took several years to complete its transition across 19 facilities, adapting solutions to each site’s constraints. UK manufacturers should similarly expect multi-year programs requiring sustained management attention and capital allocation. Companies that start planning now will be better positioned to meet future regulatory requirements and customer expectations.

Government guidance and industry resources for industrial decarbonization

The UK government provides several resources to support industrial energy transitions. The Department for Energy Security and Net Zero publishes guidance on industrial decarbonisation strategy and available funding programs. The Industrial Energy Transformation Fund offers grants for energy efficiency and low-carbon technology deployment in eligible sectors.

For companies pursuing carbon reduction plans for public sector procurement compliance, understanding Scope 1, 2, and 3 emissions calculation methodologies is essential. The Greenhouse Gas Protocol provides the international standard framework, while UK-specific guidance aligns these methods with PPN 006 requirements. Businesses can also access training on emissions measurement and reporting to build internal capability.

The CDP climate disclosure platform offers frameworks for reporting emissions and setting science-based targets. Many large buyers now require suppliers to disclose through CDP or similar platforms. Companies pursuing external validation of their decarbonization efforts should consider CDP reporting alongside other recognized standards.

Industry-specific guidance is available through sector trade bodies. The Manufacturing Technologies Association, Make UK, and sector-specific organizations often publish case studies and technical resources relevant to particular industrial processes. These practical examples help businesses identify proven approaches and avoid common pitfalls in energy transition projects.