International, Transport Industry News

Scania to source low carbon steel for its trucks from 2025

With around four tonnes of steel in each Scania truck, using green steel will go a long way in helping the manufacturer to achieve its carbon-zero targets.

In what’s being hailed as a massive step towards decarbonising its supply chain, Scania has signed an agreement with H2 Green Steel to use its sustainable steel as soon as its available.

With a stated mission of phasing out the main sources of CO2 emissions in its supply chain by 2030 Scania is pursuing 100 per cent green steel, 100 per cent green batteries, 100 per cent green aluminium and 100 per cent green cast iron for its production lines.

H2 Green Steel is committed to reducing its carbon footprint, employing fossil-fuel free fuels to generate electricity and hydrogen to power its mill.

It is in the process of building a plant in Boden, Northern Sweden, which will form part of a new “green” community and be set up to deliver sustainable materials by 2027.

Scania executive vice-president and head of R&D and purchasing Anders Williamsson says the agreement is a big step forward for the truck brand.

“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,” Williamsson says.

With about four tonnes of steel used to build each Scania truck, converting the supply to green steel will help make the trucks of the future carbon neutral.  

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Scania’s plan is to use green steel in its European operations, before extending its reach into production hubs in China and Latin America.

Commercial Head of Boden Steel at H2 Green Steel, Mark Bula, said Scania’s support would help the business to deliver on its dream.

“Scania has been one of our biggest supporters from day one,” Bula says.

“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.

“Scania is truly a pioneer in sustainability and was first in their sector to set Science-Based Targets in line with the Paris Agreement.

“Now all our forward leaning off-take customers are doing the same.”

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