Scania to purchase ‘green’ steel for truck production
27 June 2023
Scania has entered into an agreement with H2 Green Steel for the delivery of sustainable metal to be used across truck production.
Swedish company H2 Green Steel produces the steel using a low-carbon production process powered by green hydrogen. Green hydrogen is produced using fossil-free energy.
According to Scania, the move is a ‘massive step’ in decarbonising the truck maker’s supply chain and reducing its climate footprint.
“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,” said Anders Williamsson, executive vice president, R&D and Purchasing at Scania.
Production of the green steel is set to start at the plant in Boden in 2025, with deliveries starting in 2027.
A further aspect of the deal is Scania’s partner role in the First Mover’s Coalition. This encourages companies to increase low-carbon purchasing in areas which are difficult to decarbonise.
“[Scania’s] support and partnership in crafting the value proposition has contributed massively to our go-to-market strategies,” said Mark Bula, commercial head of Boden Steel at H2 Green Steel.
The truck maker estimates that about four tonnes of steel are used in each vehicle. Using green steel will create ‘clear potential for substantially positive climate impact’.
Scania is planning to eliminate carbon emissions from most of its supply chain by 2030. This includes using 100 green steel, together with 100% green batteries, aluminium and cast iron.
The supply chain decarbonisation strategy will initially target production in Europe, although the company reports it has plans to roll out the scheme in China and Latin America.