Swedish vehicle manufacturer Scania has signed a contract with H2 Green Steel for its first order of sustainable steel.

The initial contract will provide Scania with sustainably produced steel for building its trucks, allowing the company to take another ‘big step towards reducing the climate footprint of its vehicle manufacturing’, says H2 Green Steel. 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.

The far-reaching agreement is a key element of Scania’s strategy to eliminate the largest sources of carbon emissions from the most emitting production materials and batteries. Scania is aiming to phase out the main sources of CO2 emissions in its supply chain by 2030, including a target of using 100% green steel, 100% green batteries, 100% green aluminium and 100% 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.”

Anders Williamsson, executive vice president, head of R&D and purchasing at Scania

“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,” commented Anders Williamsson, executive vice president, head of R&D and purchasing at Scania.

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

Mark Bula, commercial head of Boden Steel at H2 Green Steel

“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”, said Mark Bula, commercial head of Boden Steel at H2 Green Steel.