Scania and SSAB agree on far-reaching steel decarbonisation
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.
Anna Molin, press officer at SSAB, anna.molin@ssab.com, phone: +46 76 110 46 76
Erik Bratthall, corporate public and media relations manager at Scania, erik.bratthall@scania.com, phone: +46 76 724 45 27
SSAB is a Nordic and US-based steel company. SSAB offers value added products and services developed in close cooperation with its customers to create a stronger, lighter and more sustainable world. SSAB has employees in over 50 countries. SSAB has production facilities in Sweden, Finland and the US. SSAB is listed on Nasdaq Stockholm and has a secondary listing on Nasdaq Helsinki. www.ssab.com.
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Scania is a world-leading provider of transport solutions. Together with our partners and customers we are driving the shift towards a sustainable transport system. In 2022, we delivered 80,238 trucks, 4,994 buses as well as 13,400 industrial and marine power systems to our customers. Net sales totalled to over SEK 170 billion, of which over 20 percent were service-related. Founded in 1891, Scania now operates in more than 100 countries and employs nearly 57,000 people. Research and development are mainly concentrated in Sweden. Production takes place in Europe and Latin America with regional product centres in Africa and Asia. Scania is part of TRATON GROUP. For more information visit: www.scania.com
