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Oatly plans to source 100% of its energy from renewable sources in Europe by 2030, extending the deadline to 2035 for North America. Energy constituted 16% of its carbon footprint in 2024, with a target of 40% reduction in climate emissions per liter by 2030.

In 2024, 75% of the energy used in Oatly's factories came from fossil fuels for steam generation. The company sourced 38% of its energy from renewables, including biofuels and biomethane certificates. Oatly is focusing on improving energy efficiency and reducing steam usage.

Strategies include using waste heat and hot water effectively, as seen in their Millville, New Jersey facility, which installed heat exchangers. Future evaluations include industrial heat pumps and electric boilers, although adoption remains limited, particularly in the U.S. due to the availability of cheap natural gas.