Landmark agreement will see H2
Green Steel provide sustainable material for building Scania trucks
STOCKHOLM, June 27, 2023 /PRNewswire/
-- Scania is taking a massive step towards decarbonizing its supply chain by
placing its first order for green steel. The initial contract with H2 Green
Steel 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. 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 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.