Swedish steelmaker SSAB and Scania have signed a letter of intent to decarbonize all deliveries of steel to be used in the construction of Scania’s heavy-duty vehicles by 2030.
Deliveries of SSABs Fossil-free™ steel are targeted to ramp up rapidly from smaller amounts starting in 2026 and will be key in the shift towards a sustainable transport system.
SSAB is Scania’s main steel supplier for its vehicles. The new deal is the next step in a long-standing relationship between the two Swedish companies and is designed to achieve 'radically lowered climate emissions'.
According to SSAB, the 100% ambition for decarbonized deliveries is among the boldest of intentions agreed between SSAB and a customer. "It marks an ambitious plan within the First Movers Coalition, where Scania and SSAB are members to reduce the carbon footprint in hard-to-abate sectors. Through this partnership, Scania and SSAB are committed to use their purchasing power to create early markets for innovative clean technologies".
Martin Lindqvist, CEO of SSAB, commented: “We are truly looking forward to ramping up the deliveries of our fossil-free steel, thereby contributing to more sustainable value chains. Fossil-free steel will be a game-changer in heavy transport. It has the same high quality and technical properties as traditional steel. And, while being produced in a sustainable way, it can also be recycled just like steel has always been.”
“I’m glad and proud that we have reached this agreement. Scania’s purpose is to drive the shift towards a sustainable transport system. To fulfil that purpose, we take action across the value chain together with partners as SSAB, who is at the forefront in the transition to a sustainable steel industry.”Christian Levin, CEO, Scania
“I’m glad and proud that we have reached this agreement. Scania’s purpose is to drive the shift towards a sustainable transport system. To fulfil that purpose, we take action across the value chain together with partners as SSAB, who is at the forefront in the transition to a sustainable steel industry,” says Christian Levin, CEO at Scania.
Scania has outlined what is regarded as an industry-leading strategy to significantly reduce carbon emissions within four 'hotspots' by 2030, constituting approximately 80% of supply chain emissions: batteries, steel, aluminium and cast iron. The company's 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.
SSAB plans to deliver its Fossil-free™ steel to the market on a commercial scale in 2026 and for its operations to be largely fossil-free around 2030.
SSAB Fossil-free™ steel is manufactured using HYBRIT technology, which replaces coking coal that is traditionally used for iron ore-based steelmaking with fossil-free electricity and hydrogen. The by-product is water instead of carbon dioxide.