Scania and SSAB Join Forces to Achieve Full Decarbonization of Steel Deliveries for Heavy-Duty Vehicles by 2030

Scania and SSAB Join Forces to Achieve Full Decarbonization of Steel Deliveries for Heavy-Duty Vehicles by 2030

(IN BRIEF) Scania and SSAB, two leading companies in the transportation and steel industries, have signed a letter of intent to eliminate carbon emissions from all steel deliveries from SSAB to Scania’s heavy-duty vehicles by 2030. This ambitious goal includes a rapid increase in the delivery of SSAB’s Fossil-free™ steel, starting in 2026, and is a significant step towards building a sustainable transport system. SSAB is Scania’s primary supplier of steel, and this agreement underscores their commitment to dramatically reducing climate emissions. The collaboration also aligns with the First Movers Coalition, a group dedicated to reducing carbon footprints in challenging industries. Scania and SSAB intend to leverage their purchasing power to create early markets for innovative clean technologies. The use of Fossil-free™ steel, produced using the HYBRIT technology, promises to revolutionize heavy transport by providing high-quality steel manufactured sustainably, with the potential for recycling. Scania aims to reduce carbon emissions within key supply chain areas, including steel, by 2030, while SSAB plans to deliver commercial-scale Fossil-free™ steel by 2026 and achieve significant fossil-free operations by around 2030 through innovative manufacturing methods that replace traditional coal with clean energy sources.

(PRESS RELEASE) SÖDERTÄLJE, 14-Nov-2023 — /EuropaWire/ — Scania and SSAB have signed a letter of intent to decarbonise all steel deliveries from SSAB to Scania’s heavy-duty vehicles in 2030. Deliveries of SSABs Fossil-free™ steel is 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 supplier of steel for its vehicles. The new deal, a next step in the long-standing relationship, caters for radically lowered climate emissions. The 100 percent ambition for decarbonised deliveries is among the boldest of intentions agreed between SSAB and a customer. It moreover 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.

“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.

“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,” says Martin Lindqvist, CEO at SSAB.

Scania has outlined an industry-leading strategy to, by 2030, significantly reduce the carbon emissions within four “hotspots,” constituting approximately 80 percent of the supply chain emissions: batteries, steel, aluminium and cast iron*.

SSAB plans to deliver its Fossil-free™ steel to the market at commercial scale in 2026 and for its operations to be largely fossil-free around 2030. SSAB Fossil-free™ steel is manufactured using the HYBRIT technology, which replaces the coking coal traditionally used for iron ore-based steelmaking with fossil-free electricity and hydrogen. The by-product is water instead of carbon dioxide.

* The supply chain decarbonisation strategy and targets intially comprise of Scania’s production in Europe but will gradually be extended to its production in China and Latin America.

Watch this video to learn more.

Media Contacts:

Erik Bratthall
Corporate Public and Media Relations manager
Scania
phone: +46 76 724 45 27
erik.bratthall@scania.com

Anna Molin
press officer
SSAB
anna.molin@ssab.com
phone: +46 76 110 46 76

SOURCE: Scania