Scania will use green steel for truck production: supply agreement announced

Scania is taking a massive step towards decarbonising its supply chain by placing its first order for green steel. Indeed, H2 Green Steel will provide sustainable material for building Scania trucks. Production will begin at H2 Green Steel’s new plant in Boden, northern Sweden, in 2025, with deliveries of the sustainable material set for 2027.

Green steel is part of Scania’s ambitious strategy

The far-reaching agreement is a key element of Scania’s ambitious, industry-leading strategy to eliminate the largest sources of carbon emissions from the most emitting production materials and batteries. The goal of the strategy is for Scania to phase out the main sources of CO2 emissions inits supply chain by 2030, including a target of using 100 percent green steel, 100 percent green batteries, 100 percent green aluminium and 100 percent green cast iron in its production.

“With this first order from our strategic partner H2 Green Steel, we are continuing our progress towards minimising the climate impact from our supply chain,” says Anders Williamsson, Executive Vice President, Head of R&D and Purchasing at Scania.

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The fossil-free steel is produced by the Swedish steel manufacturer SSAB and is made by using a completely new technology with fossil-free electricity and hydrogen. The result is a significantly lower climate impact and an important step towards a net-zero emissions value chain.

“Scania has been one of our biggest supporters from day one. Not only in helping frame the opportunity for green steel but also as an early seed capital investor. Their support and partnership in crafting the value proposition has contributed massively to our go-to-market strategies”, added Mark Bula, Commercial Head of Boden Steel at H2 Green Steel.