Scania's Green Steel Order Advances Decarbonisation

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by KnowESG
KnowESG_Scania first green steel order
Image courtesy of Scania

Scania takes a major step towards decarbonising its supply chain with its inaugural green steel order.

In a significant move, Scania has placed its first order for green steel, advancing its efforts to reduce carbon emissions throughout its supply chain.

The initial agreement with H2 Green Steel ensures the provision of environmentally friendly steel for Scania trucks, marking a significant stride in minimising the climate impact of the company's manufacturing processes.

Production is scheduled to commence at H2 Green Steel's newly established plant in Boden, northern Sweden, by 2025, with deliveries of sustainable steel expected by 2027.

This far-reaching partnership forms a crucial component of Scania's ambitious and industry-leading strategy to eliminate carbon emissions originating from high-emitting production materials and batteries.

By 2030, Scania aims to phase out the primary sources of CO2 emissions in its supply chain, including the utilisation of 100 per cent green steel, 100 per cent green batteries, 100 per cent green aluminium, and 100 per cent green cast iron in its manufacturing processes.

As a member of the First Movers Coalition, Scania also plays a pivotal role in encouraging companies to increase their procurement of low-carbon alternatives in sectors that pose significant decarbonisation challenges.

This new agreement will aid Scania in meeting its commitment to the coalition by procuring substantial amounts of green steel. Given that approximately four tonnes of steel are used in the production of a single truck, the potential for a substantial positive climate impact through the use of green steel is evident.

Anders Williamsson, Executive Vice President and Head of R&D and Purchasing at Scania, highlights the significance of this initial order, stating, "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."

Mark Bula, Commercial Head of Boden Steel at H2 Green Steel, acknowledges Scania's invaluable support and contribution to the development of green steel, stating, "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. Scania is truly a pioneer in sustainability and was the first in its 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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Source: Scania

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