Scania places first green steel order in further step towards decarbonized supply chain

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 in its supply chain by 2030, including a target of using 100 percent green steel, 100 percent green batteries, 100 percent green aluminum and 100 percent green cast iron in its production*. The far-reaching...

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 in its supply chain by 2030, including a target of using 100 percent green steel, 100 percent green batteries, 100 percent green aluminum 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 minimizing the climate impact from our supply chain," says Anders Williamsson, Executive Vice President, Head of R&D and Purchasing at Scania.

Another important aspect of this work is Scania's role as a partner in the First Movers Coalition, which encourages companies to increase low-carbon purchases in areas that are hard to decarbonize. The new contract will help Scania meet its commitment to the coalition to buy significant amounts of green steel. About four tons of steel is used to manufacture a truck so there is clear potential for a substantially positive climate impact from using green steel instead.

"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 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," says Mark Bula, Commercial Head of Boden Steel at H2 Green Steel.

*The supply chain decarbonization strategy and targets initially comprise Scania's production in Europe but will gradually be extended to its production in China and Latin America.

CONTACT:
Karin Hallstan, Head of Public and Media Relations
Phone: +46 76 842 81 04

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