Scania, a leading manufacturer of trucks, is making significant progress in decarbonising its supply chain by initiating its first order for green steel.
The Swedish truck builder has entered into an agreement with H2 Green Steel to obtain sustainably produced steel for its truck manufacturing, marking a substantial milestone in reducing its vehicles’ climate footprint. Production of the green steel will commence at H2 Green Steel’s new plant in Boden, northern Sweden, in 2025, with deliveries of the sustainable material expected by 2027.
This far-reaching agreement is a crucial element of Scania’s ambitious strategy to eliminate carbon emissions from its production materials and batteries. By 2030, Scania aims to phase out the main sources of CO2 emissions in its supply chain, including a target of utilising 100 percent green steel, 100 percent green batteries, 100 percent green aluminum, and 100 percent green cast iron in its manufacturing processes.
Scania’s involvement as a partner in the First Movers Coalition is also significant in this context. The coalition encourages companies to increase their purchases of low-carbon products in sectors that are challenging to decarbonise. This new contract aligns with Scania’s commitment to the coalition, demonstrating its dedication to procuring significant amounts of green steel. As approximately four tonnes of steel are used in the production of a single truck, the adoption of green steel has the potential to generate a positive impact on the climate.
Anders Williamsson, the Executive Vice President and Head of R&D and Purchasing at Scania, emphasises the importance of this first order from H2 Green Steel, highlighting the company’s ongoing efforts to minimize the climate impact of its supply chain. In turn, Mark Bula, the Commercial Head of Boden Steel at H2 Green Steel, acknowledges Scania’s support and partnership in developing the value proposition for green steel.
